YOUNG people will be able to access enterprise loans of between £5,000 and £10,000 to enable them to start their own business, under a pilot scheme announced in yesterday’s Budget.
The deal will be structured in a similar manner to the existing student loans, with low rates of interest likely to be pegged close to the RPI measure of inflation.
Chancellor George Osborne said that he wants to support entrepreneurs aged between 18 and 24.
“Young people get a loan to go to university or college. We now want to help them get a loan to start their own business,” he explained.
It is hoped that the scheme, which will be governed by the Department for Business, Innovation and Skills (BIS) could be running by the end of the year, with an initial £10m set aside to provide funding and cover administrative costs.
The campaign for the fund has been led by Richard Branson’s Virgin conglomerate.