Funding news - 30/03/2012
Youth Investment Fund Pilot for UK's Upcoming Entrepreneurs
Outline details of the proposed Youth Investment Fund were announced in the 2012 Budget. It has now been confirmed that the scheme will be piloted in partnership with the National Youth Enterprise Working Group.
Based on the current student loan system, the initiative will enable young people who choose not to go to university to access low interest loans for starting up a business.
There is an anticipated overall budget of £10 million available. Loans are expected to be worth between £5,000 and £10,000 per individual.
Young entrepreneurs aged 18-24 who are planning to start up a business enterprise in the UK will be eligible to apply for a loan.
The Government is currently looking for private and third sector organisations to help run the scheme nationwide during its pilot phase, which will commence before summer 2012 and last for one year. The Government is planning to have the scheme running fully and evaluated in time for the 2013 Budget.
Speaking about the launch of the new scheme, a spokesperson for the Treasury said: "The government recognises that the best route out of unemployment for some young people will be starting up in business, but that it can be difficult to obtain the skills and capital required.
"Building on the support already available, including the New Enterprise Allowance, later this year the Government will pilot the best way to introduce a programme of enterprise loans to help young people set up and grow their own business."
Sir Richard Branson commented: "This has the potential to transform the prospects of thousands of young people. The entrepreneurs of today will be the job creators of tomorrow so I'm delighted that the government has listened to those at the very start of their careers.
"The country is full of gifted and enterprising people so this pilot, which crucially has business mentoring and support at its heart, will help prevent a lost generation of talent."
The scheme is yet to open to applications. Details and deadline information (if applicable) will be reported when available.
Source: Department for Business, Innovation & Skills, 30/03/12