New Businesses: Loans
The question
To ask the Secretary of State for Business, Innovation, Science and Trade, what assessment he has made of the adequacy of the description of the Start Up Loans Scheme as Government Backed in providing clarity to prospective applicants about the Government’s financial support for the scheme, including whether the Government (a) underwrites and (b) guarantees the lending provided.
Answered by Department for Business, Innovation, Science and Trade
The Start Up Loans programme provides access to finance for individuals seeking to start or grow a business. The programme is described as government-backed because the programme and its lending are funded by government through the British Business Bank. A Start Up Loan is an unsecured personal loan, rather than a government guarantee of borrowing from another lender. The individual borrower remains personally responsible for repaying the loan, and this is made clear to prospective applicants. Lending decisions are made by Start Up Loans’ finance providers, following assessment of an applicant’s business plan, affordability and creditworthiness.
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