Support schemes for start ups during coronavirus

The government recently announced The Future Fund – a £1.25bn support package for new businesses and start ups that are not eligible for existing coronavirus rescue schemes.

23 April 2020

Financial support for start ups

Younger businesses may find that they are not eligible for some of the support schemes that the government has recently announced, such as the Coronavirus Business Interruption Loan Scheme (CBILS). Check out the alternatives below to see if you could receive funding to help your business through coronavirus.

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New Enterprise Allowance

What is it?

If you’re just starting out as a business owner, the New Enterprise Allowance (NEA) could be a good way to get your project off the ground. The government scheme offers financial support of up to £1,274 per week for 26 weeks, along with mentoring services and workshops. The scheme seeks to reward those with ambitious and innovative business proposals.

Am I eligible?

In order to be eligible for NEA, you or your partner must be 18 or over and receive either Universal Credit, Jobseeker’s Allowance or Employment and Support Allowance. Alternatively, if you receive Income Support you could also be eligible.

How do I apply?

To get started with NEA you’ll need to speak to a Jobcentre Plus work coach who’ll chat through your business idea with you, and help you work out if you’re eligible.

For more information, visit the NEA page here.

The Start Up Loan

What is it?

The Start Up Loans Company was set up to provide access to affordable finance and mentoring support. A subsidiary of the British Business Bank, it delivers the Government’s Start Up Loans programme – a platform designed to help new and early-stage UK businesses.

How much could I receive?

New companies can apply for a Start Up Loan of £500 to £25,000, which is an unsecured personal loan backed by the government. Applicants can get free support and guidance on business plans, and successful applicants get up to 12 months of free mentoring.

How can I apply?

You can apply now on the Start Up Loans website.

The Prince’s Trust

The Prince’s Trust specialises in working with young entrepreneurs to turn their business ideas into a reality. Aimed at 18-30 year-olds, the charity offers start-up business loans of up to £5,000 at 6.2% APR representative, meaning you could get an injection of capital at a competitive rate.

On top of this, the team is also available to give advice to those new to owning a business or those in need of assistance. They offer advice on budgeting, tax and insurance queries, and even offer start-up business grants in special circumstances.

For more information, visit their business loans page.

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Dan is part of the content team at iwoca. He writes for both the insights and finance explained pages, and produces the 9 to when? podcast.

Article updated on: 26 May 2020

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