Start Up Loans are now available across Wales as part of the Welsh Government Business Start Up service and can provide entrepreneurs starting a business in Wales with low interest rate loans.
Welcoming the move Economy Minister Edwina Hart said: ”I am pleased to support the introduction of Start Up Loans to Wales as part of our overall comprehensive business support package for young start up companies.
“Encouraging entrepreneurs to start their own business is an important strand in our strategy for economic growth although we are aware that access to finance can be a real issue for young businesses. The availability of relatively low levels of funding at a fixed interest rate addresses this and has the potential to make a real difference in getting a business up and running.
“ The loans will be delivered in Wales as part of our Business Start Up service where the providers are already working with individuals wishing to start up in business. The availability of low interest rate loans, together with business advice and mentoring, enhances the overall package we can offer entrepreneurs.”
Start Up Loans CEO, Tim Sawyer, said: ‘I am delighted to announce the partnership with our colleagues in Wales. We are very much looking forward to forming strong relationships with both partners and entrepreneurs alike. And I am equally pleased to see the scheme extend to all ages . Now we are able to help any enterprising individual with a strong business idea, and the determination to see it through”.
The loans from the UK Government backed scheme will be delivered through the Business Start Up service that operates across Wales and applications must be supported by robust business cases.
The minimum loan is £1000 with the average loan around £4,500. The loans are to be paid back within five years at a fixed rate of interest currently set at 6%.
The availability of low interest rate loans for start ups was one of the recommendations of the Access to Finance Review led by Professor Dylan Jones- Evans.
The five lead delivery providers, who will approve loan applications locally on a panel basis, are: Antur Teifi, Wrexham County Borough Council, Business in Focus, Annog Cyf and The Centre for Business.