PM David Cameron has launched a new loan scheme for young people who want to start their own business.
Announcing an £82.5 million StartUp Loan scheme for 18 to 24-year-olds, Mr Cameron said he wanted young people to have the confidence and support to turn “that spark of an idea into the next global brand”.
The StartUp Loans are expected to be worth typically around £2,500, to be repaid within five years at most. Interest will be charged at the level of the Retail Prices Index plus 3%.
Mr Cameron said he hoped the initiative could lead to 30,000 more start-ups and give a boost to economic growth.
The loans will be administered by a handful of ‘delivery partners’ – organisations with experience in helping young people start businesses – such as the Prince’s Trust. These partners will provide support and mentoring, assess the viability of young people’s business plans, and manage repayments.
Mr Cameron said: “I want this to be the year where people can think: yes, I can do it; that we can get as many viable businesses as possible off the ground, that people can have a go and that we see a whole new wave of entrepreneurs who start small but think big.”
Dragons’ Den star James Caan will chair a new body to oversee the scheme.
The entrepreneur said: “The StartUp Loans initiative provides guidance, access to expertise and finance. These are the three vital ingredients for starting your own business. Armed with all of these, young people are already on the way to shaping their own future.”
For more information on StartUp Loans, visit http://www.startupbritain.org/loans