EN Launches Start-UP Loans Campaign
Elevation Networks has recently become an official Delivery Partner for the Department for Business, Innovation & Skills’ Start-Up Loans initiative. Over the coming months we will aim to distribute up to £1 million worth of loans to 350 young people that need capital to start or grow a new business. They will be given access to a mentor, monthly training, and a number of other benefits through the initiatives Global Partners (including ebay and PayPal). The government is aiming to set up 30,000 businesses through a new generation of entrepreneurs between now and 2015, and we hope to grow our provision from 350, to 1000 businesses.
What are Start-Up Loans?
Start-Up loans are loans aimed at young entrepreneurs. At the moment, this is aimed at 18-30 year olds, who are living in England and looking for finance to start a business.
How do people apply?
You can apply by filling out this brief application form.
How much can be borrowed?
This will be agreed between the applicant and the delivery partner. The average loan size will be around £2,500, this being provided by the government. However, the final amount will be determined by the overall application. There is no upper limit.
What kind of loan is it?
The Start-Up loan is a personal loan, which means if 4 or 5 people from the same company apply for a loan, all are eligible for an individual loan up to invest in their business.
What are the payback terms?
You will be required to pay back the loan within five years at a fixed-rate of interest – currently 3% + RPI. Capital repayment holidays are available (of up to 1 year), but interest must be covered monthly throughout.
What else do the applicants receive?
As well as the loan, business support and mentoring, applicants will also be eligible to enrol in resources from a number of our Global Partners. The current global partners include Regus, PayPal, ebay, and Intuit.
What is included in the Regus Package?
6 months free access to Regus’ Virtual Office Package and access to most of their business lounges across the world. In addition, applicants will also receive a free copy of the Start-Up Loans kit, which offers all the guidance you need to start a business, plus more than £500-worth of offers on products from business cards to websites, netbooks and work suits.
What is included in the PayPal package?
From the PayPal group, we have three exciting offers:
- PayPal: Reduced transaction fees for six months (from 3.2% to 1.4%)
- eBay: Three months free eBay store and no insertion fees
- Magento Go: Six months’ free e-commerce package
Who will be deciding who gets the loans?
The underlying criteria for accepting loans are set by the Start-Up Loans Company to ensure a consistent approach is followed across the country. In most cases the young entrepreneur will be expected to make a pitch to a panel. Support will be provided to applicants.