StartUp Loan| Frequent Questions     

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Startup Loan


Frequently Asked Questions

What are Startup Loans?

Startup loans are loans aimed at young entrepreneurs. The loans are funded by the British Government and are aimed at 18 – 30 year olds who are living in England and are looking for finance to start a business. It is a personal loan.

How do I apply

Connect London are an approved delivery partner – apply on line .

Who can apply for the Loan?

British citizens or legal residents of England.
EU citizens who plan to move to UK and open a business in the UK up to the age of 30- at the date of applying for the loan.
Non EU citizens with permission to reside and work in the UK for the period of the loan.

What is the amount of the Loan?

From £1,000 to £9,900, but in the case of up to four co-founders each one can apply so “partners” could obtain a maximum of £40,000 but each partner would have to complete the personal details to ensure they meet the eligibility criteria.

Is the loan only available to members of the Connect London Business Club (CLBC).

No they are independent but recipients of the loan are very welcome to apply for membership of CLBC. – See connectlondon.org – home page.

Will the scheme be extended to cover over 30’s?

The Government as indicated it may extend the scheme- but probably for special groups such as ex-armed forces. We suggest you apply and we will try to assist through this scheme or other alternatives.

Will I receive any support apart from the Loan?

Yes, free of charge mentoring is a part of the package.
Connect London has one of the largest banks of mentors in the UK and is a member of Mentorme set up by the UK banks (BBA)

Can I apply for a loan despite having started?

You may have already started the business -but not been trading for longer than one year.

Do I lose Job Seekers Allowance if I receive a Startup Loan?

Yes, almost certainly.

Can I receive Support and a Loan under the new Enterprise Allowance (NEA) and a Start-up Loan?

No.

Can I apply for more than one Startup Loan?

No – but each co-founder or partner can apply (up to to a total of four)

What will happen in case the Business cannot make repayment and perhaps eventually fails?

The loan is a personal loan which the entrepreneur then invests in this business. As in all such cases individuals must use their best endeavours to repay the loan. Delivery partners are committed to help the entrepreneurs according to their circumstances as it is very important for loan recipients to inform their mentor and Connect London in case of problems.

Can I be taken to Court in Case I am unable to repay my Loan?

The Judgement on this will be made by Startup Loans Company but they will take into account feedback from Connect London and the mentor on what commitment the entrepreneur has shown to meet the repayments.

What is the Interest Rate?

Fixed rate of 6% nominal per annum (6.2% APR)

What is the Repayment Period?

Up to 5 years. Capital repayment holidays are available for up to one year- but interest must be covered monthly during the loan term.

Do I need a Business Account?

No this is a personal loan.


Apart from the Loan and Mentoring are there other products and services included?

Yes- Many Corporates have agreed to support recipients of the loan.

  • Connect London Discounted accommodation for virtual, hot desk and fixed
    desk (nishant@connectlondon.org)
  • Regus Free use of virtual office and longer for 6 months
  • Intuit 24 free access to Quick Books Simple Start
  • Pay Pal Discounted transaction fees for 6 months
  • Magento Co Free website for 6 months
  • Ebay Free Ebay stores for 3 months and no insertion fees
  • Flyerzone £30 free printing
  • World Pay Discounted Fees

How long will it take to receive the Loan?

We aim to process the application within 5 working days of receipt of all information with the objective of the loan being issued within 20 working days

What Documents do I need to Submit?

Initially - Preliminary Application Form.

Secondary

  • Copy of passport or birth certificate
  • Copy of personal bank statement (less than 3 months old)
  • Copy of visa for proof and date of residency and permission to work
  • Cash Flow Forecast

How do I apply?

Complete the preliminary application form

In case of queries whom, do I contact?

Please email startuploan@connectlondon.org so we can respond by email, telephone or SKYPE

 

 

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