Most types of business can get a Start Up Loan, but a small number of sectors are excluded, and the money can't be used for certain purposes. If your business or plan falls into one of these, the application can't go ahead.
Business types that can't be funded
- weapons
- chemical manufacture
- pornography
- drugs, or any illegal activity
- banking, money transfer and other activities regulated by the Financial Conduct Authority
- unlicensed private investigators
- gambling and betting
- property investment
- agents who earn only commission for selling on behalf of a third party (franchises are fine)
- charities
Community interest companies, not-for-profits and social enterprises with a sole community focus aren't automatically excluded. They're considered case by case.
What the money can't be used for
- paying off existing debts, including refinancing other borrowing
- training, qualifications or education courses
- investments that aren't part of running an ongoing business
What it can be used for
Running and growing the business you describe in your plan: equipment, stock, premises, marketing and similar costs. See our guide, Can I use a Start Up Loan for stock or equipment?
Not sure where you fit?
Some businesses sit close to a line. Our 60-second eligibility check is the quickest way to find out, or call us on 0800 870 8739.
Last reviewed: 8 October 2026