Entrepreneurs participating in the Start Up Loans Scheme will have access to second-stage funding from Santander from today – with more high street banks expected to follow shortly.
They will be able to apply to borrow up to £25k, with relaxed funding criteria when compared with normal applicants.
Steve Pateman, Head of UK Banking at Santander, said: “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 Start Up Loans scheme offers entrepreneurs with a new business idea the chance to borrow money on favourable terms to get themselves off the ground. The entrepreneurs are also provided with a mentor to guide them through the early stages.
James Caan, chairman of Start Up Loans, 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 young budding entrepreneurs, demonstrating the powerful role that Start-Up Loans play in creating a new generation.”
The government recently announced a funding push to extend Start Up Loans to the over 30s in England and Northern Ireland, and a roll-out in Scotland and Wales