government backed start up loans should be less than 6% interest

[madhurjazz]

I get that they may have a high amount that default. But they are often given out to long term unemployed who have a buisness plan that has been check ed and been seen to be viable and a way to take them off benefits. Can only be for a small amount like a grand and such a high interest rate in comparison to the base rate makes them less likley to be successful.

A government backed loan is a tax payer backed loan. 6% historically is an incredibly low rate for an unsecured loan of this type. If you can't make a business work paying only 6% it probably isn't going to work long term.
Sorry

I'm in full time employment and even I can't get a 6% unsecured loan, 6% is a good deal.

It's an incredible deal. Only 6% interest rate, all the risk on the tax payer & no financial input to begin from the business owner??

YABVU

YABU. 6% is a very good rate for that type of loan.

I had one paid it off 6 years early last night. It is an amazing deal as there are no early redemption penalties which a large number of commercial business loans have.
I had a business development manager who came with the loan who has been invaluable for advice and support through out the time.

Fair enough I'm bu!

I could lend the family member the money using nt mortgage, so costs 1.25%. Was going to do that but if the business fails can they just walk away from the gov money with no repercussions?

But the government money comes with support and expertise that will help them not to fail can you offer this too?

They will still get the support if they don't take the loan element.