Starting up
Am I eligible for a Start Up Loan? The 2026 checklist
Am I eligible for a Start Up Loan? The 2026 checklist: age, residency, the 60-month trading rule, excluded business types and the second-loan route.
You are eligible for a Start Up Loan if you are 18 or over and live in the UK with the right to work here. Your business must be UK-based, and either pre-launch or trading for up to 60 months. You also need to pass the scheme's credit and affordability checks. Here is each test in plain English.
Section 01
The eligibility checklist
A Start Up Loan is a government-backed personal loan for business purposes. The scheme is funded through the British Business Bank. To qualify, all of the following need to be true:
- You are 18 or over.
- You live in the UK and have the right to work in the UK.
- Your business is based in the UK.
- You are starting a new business, or you have been trading for up to 60 months.
- Your business type and loan purpose are eligible under the scheme.
- You can afford the repayments and you pass the scheme's credit check.
- This is your first Start Up Loan, or you qualify for the second-loan route below.
- You have not been declined for a Start Up Loan in the last six months.
The scheme also asks you to confirm one more thing. You must have been unable to secure finance from other sources. A self-declaration is acceptable, so you do not need a bank rejection letter.
Section 02
Am I eligible for a Start Up Loan if I have been trading for a while?
Probably, and for longer than most older guides say. From 6 April 2026 the trading-history limit rose from 36 months to 60 months. If your business has been fully trading for less than five years, the scheme is still open to you. Pre-launch businesses qualify too. You do not need a single day of trading history to apply.
The same April 2026 change moved the rate from 6% to 7.5% fixed. If two guides disagree on the numbers, check the date on the page.
Section 03
Business types and purposes the scheme will not fund
Most everyday businesses qualify: trades, services, food, retail, online. The scheme publishes a list of exclusions. It includes categories such as weapons, gambling, property investment, and charities rather than trading businesses. The loan must also fund the business itself. Repaying existing debt and paying for training courses are among the excluded purposes.
Not sure whether your business type qualifies? Ask before you build a full application around it. It is a two-minute answer.
Section 04
What the credit check involves
Eligibility checkers do not touch your credit file. A full credit and affordability check happens later, at the formal application stage. The scheme runs that check, not bizbritain. A less-than-perfect score is not an automatic no. The assessment looks at your whole position, including your plan and what you can afford to repay.
Section 05
Already had a Start Up Loan?
You may still qualify for a second one. Your first loan must have been drawn down at least six months ago. You need three months of on-schedule repayments behind you. The combined total across both loans is capped at £25,000 per person. The full rules are in our guide to the 2026 rate and eligibility changes.
Section 06
What you can borrow if you qualify
Between £500 and £25,000 per founder, at 7.5% fixed, repaid over one to five years. Up to four co-founders can each apply in the same business, to a combined £100,000. There are no arrangement fees and no early-repayment penalties. Every approved loan includes 12 months of free mentoring.
If the checklist reads like you, take the 60-second Start Up Loans eligibility check. There is no credit check at that stage and no obligation. bizbritain is an FCA-authorised finance broker and a Start Up Loans Business Support Partner, with a panel of 100+ lenders. We help you prepare the business plan and cash flow forecast before you apply.
Eligible and ready to move? Read how to apply for a Start Up Loan, step by step.
Worried about what the credit check will find? Read our guide to getting a Start Up Loan with bad credit.
This guide is general information, not financial advice. Applications are subject to status, affordability and lender criteria.
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