New bank funding will be available through an extension to the Start Up Loans scheme.
As of this week recipients of Start Up Loans will be able to apply for further funding from Santander, with other High Street banks set to follow suit.
Businesses will enjoy relaxed lending criteria, and will be able to apply for up to £25,000 in “second-phase funding” under the new extension. The scheme will be open to recipients of Start Up Loans that have been operating for at least six months, and that have shown “growth and promise”.
Start Up Loans chairman James Caan said: “Second-phase funding from Santander recognises the great progress the Start Up Loans Company has made in stimulating entrepreneurship and start-ups in this country. Their commitment enables our entrepreneurs to graduate into the more traditional lending routes, previously closed off to budding young entrepreneurs, demonstrating the powerful role that Start Up Loans play in creating a new generation of entrepreneurs.”
Santander’s UK banking head Steve Patemen added: “Start Up Loans are providing exceptional advice and guidance to entrepreneurs, and by partnering with them we are able to provide second-stage funding to start ups, making finance more widely available to small businesses. This helps us bridge the funding gap that many entrepreneurs encounter and supports our aim to be the banking partner of choice for businesses.”
The bank has set aside £25 million to lend to Start Up Loans business owners. Loans will be available at fixed rates of between 7.9 per cent and 12.9 per cent p.a., over one to five years.