Starting up
Can I get a second Start Up Loan? The rules for 2026
Yes, if your first loan is six months past drawdown with three months of on-schedule repayments. The second Start Up Loan rules, including the £25,000 cap.
Yes, you can get a second Start Up Loan. Your first loan must have been drawn down at least six months ago. You need at least three months of on-schedule repayments behind you. And the combined total of both loans is capped at £25,000 per person. Your business must also still be inside the scheme's 60-month trading window.
Section 01
Can I get a second Start Up Loan? The three conditions
- Six months since drawdown. Your first loan must have been drawn down at least six months before you apply again.
- Three months of on-schedule repayments. The scheme wants to see the first loan being repaid as agreed. Missed or rearranged payments make a second application much harder.
- Room under the cap. Both loans together cannot exceed £25,000 per person. Borrowed £15,000 the first time? The most you can apply for now is £10,000.
The trading-history rule still applies. Your business needs to be within 60 months of starting to trade. Since 6 April 2026 that window is five years, up from three. That change is exactly what makes second loans practical for founders who would have aged out under the old rules.
Section 02
How much can I borrow the second time?
Whatever remains under your £25,000 personal cap, subject to affordability. The rate on a second loan is the current 7.5% fixed, over one to five years. That applies even if your first loan was taken at the old 6% rate. Co-founders each have their own £25,000 cap. A business with more than one founder may have more headroom than it thinks.
Section 03
What the application looks like
Much like the first one, with one advantage: you have done it before. You will update your business plan and cash flow forecast to show what the new money does. The scheme runs a fresh credit and affordability check. A second loan is assessed on its own merits. A strong repayment record helps, but it does not guarantee approval.
The wider 2026 rules, including the £100,000 per-business ceiling, are in our guide to the 2026 rate, eligibility and second-loan changes.
Section 04
When a second loan is the wrong tool
The cap is the cap. If the plan in front of you needs £40,000, a second Start Up Loan cannot get you there. Stretching a good plan to fit a small facility is how good plans fail. At that size the conversation is about growth finance, with different lenders. Talk to an advisor before you commit either way.
If the three conditions read like you, check where you stand in 60 seconds. Start on our page about a Start Up Loan. bizbritain is an FCA-authorised finance broker and a Start Up Loans Business Support Partner, with a panel of 100+ lenders. We help you shape the updated plan and forecast before you apply.
This guide is general information, not financial advice. Applications are subject to status, affordability and lender criteria.
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