What is the difference between a loan from the New Enterprise Allowance (NEA) and a Start Up Loan?

The NEA scheme is separate to the Start Up Loans Programme, and the associated loans have different terms. The NEA referred loan is part of a package of support aimed at helping people on benefits in England, Wales and Scotland to start their own business. You can only apply for an NEA referred loan if you have been on the NEA scheme and had your business plan approved.  The loan terms for those entering the scheme on or after 1st October 2013 have changed: the loan is now capped at £2,500, has a 6% nominal interest rate and is paid back over three years.

Posted in: Start Up Loans FAQs