Start-Up Loans Age Cap Removal Proposal

In his latest business report on small firms published earlier this month, Lord Young advocates removing the age cap on accessing taxpayer-funded loans to set up a business, which would open funding up to the over 30s.

As he says in the report, called Growing Your Business, record numbers of people are starting a small business in the UK, with 4.8 million such firms in existence.

However, until now, Start-Up Loans have been targeted at young people aged between 18 and 24, although the age limit was raised to 30 as a result of high demand and Lord Young says that he would like to see the age cap removed altogether.

The peer also suggests a greater role for business schools in the local economy, with the establishment of a new national Supporting Small Business Charter. The business schools would become a key part of the referral process and provision of Start-Up Loans.

Meanwhile, from the summer, a new scheme called SME Growth Loans will be piloted as part of the Enterprise Finance Guarantee scheme. These will facilitate loans of up to £25,000 and will target SMEs in their third year that are seeking access to growth capital.

Data in the report show that a recession is a good time to start a business but that entrepreneurs start them because they see an opportunity, not out of necessity.

Although he has been slated in some sections of the press for saying that there has never been a better time to start a business, there is certainly no shortage of help and advice available.

StartUp Britain, the national campaign aimed at supporting startups, reports 205,300 new businesses this year so far and there is always news of some award, competition or scheme to help new businesses prosper.

For example, it has just been announced that the latest pop-up shop to open will be in Camberley Surrey in early June, making the venue the sixth outlet opened by the campaign in under 12 months.

London accountant, Russell Black specialises in offering accountancy, audit and taxation advice to business start-ups.

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