- get a weekly allowance paid for up to 26 weeks (up to a total of £1,274). This is £65 for the first 13 weeks and £33 for the next 13 weeks.
- apply for a loan of £1,000 to help with start-up costs
The loan has to be paid back, the allowance doesn’t. You can pay £9 per month interest only for the first year and thereafter £45 per month. The interest rate is 10%. Watch out though as getting the loan is not a given and there can be a time delay for you to be accepted for this.
Any money you get doesn’t affect your Housing Benefit, tax credits, Income Tax, or Access to Work grant.
You could get:
- a mentor to help you develop your business idea and write a business plan
- ongoing support from a mentor in the early months of trading
As a volunteer I've helped quite a few new businesses and have been able to fit it with them as and when they needed help.
How it works
A specialist will assess your business idea and if it has potential:
- you’ll be signed up to the scheme and get a business mentor
- your mentor will help you write a business plan
You’ll be able to claim financial support if:
your business plan is approved
you start working at your business for 16 hours or more per week
The Department for Work and Pensions has more information about the New Enterprise Allowance.