Small favourable loans to be offered to UK start-ups

Young entrepreneurs aged between 18 and 24 in the UK will be offered the chance to receive small tax-payer funded loans to start their own businesses, it was announced yesterday.

Up to £10 million has been made available by the department for business, innovation and skills to provide small and cheap loans for a trial of the scheme, referred to as the Youth Enterprise Loan Scheme.

It is thought 3,000 to 5,000 start-ups could receive the funds with low interest rates, and could be relevant to small developers looking to fund new games.

“Young people get a loan to go to university or college,” said George Osborne during yesterday’s Budget announcement.

“We now want to help them get a loan to start their own business.”