Yes. Being on Universal Credit or other benefits doesn't stop you applying for a Start Up Loan. You need to meet the usual criteria, and the key question is whether you can afford the repayments.
What's checked
- The usual criteria: 18 or over, living in the UK with the right to work, and a UK business that is pre-launch or trading for up to 60 months. See Start Up Loan eligibility: am I eligible?.
- Affordability: your personal survival budget needs to show your household income, including any benefits, covers your living costs and the loan repayments. See What is your personal survival budget?
- The credit check, the same as for everyone. See Will applying affect my credit score?.
Your benefits
Starting a business can change what you receive. If you're on Universal Credit and becoming self-employed, you may qualify for a start-up period of up to 12 months while the business gets going. We can't advise on benefits, so speak to your Jobcentre Plus work coach about how starting a business and taking a loan will affect yours.
Last reviewed: 8 October 2026