Lost your job? The Fresh Start Guide helps you start your own business and land loans up to £25K
After eight years on benefits, Kristian Howell now co-runs his own business. Here’s how government-backed loans could help you do the same.
Kristian Howell thought his working life was over. A devastating farming accident in 2017 left him wheelchair-bound and unable to return to the job he loved.
Farming obviously wasn’t something I could go back to after becoming a full-time wheelchair user. With my disability, I have good days and bad days. Finding something that suited my needs felt near impossible.
–Kristian Howell, co-owner of Vine &Vibe (Pembroke)
For eight years, Kristian relied on benefits. He didn’t want to stay dependent on them, but traditional jobs couldn’t accommodate his unpredictable health needs.
Then he discovered the Start Up Loans programme. Despite being turned away by high street banks, he secured £25,000 to launch Vine & Vibe with his partner Beckie. Their indoor plant greenhouse and coffee space in Pembroke is now thriving.
“Getting back into work after being unemployed definitely came with its challenges, but starting our own business has honestly been life-changing,” says the 35-year-old. “Having the flexibility to decide my own hours means I can work around my health.”
How do you make a fresh start?
If Kristian’s story resonates with you, there’s good news. The government’s Start Up Loans programme has just launched the Fresh Start Guide to help unemployed people become their own boss.
The programme has already provided £150 million to help unemployed people launch businesses. You can borrow up to £25,000 to turn your idea into reality.
The free guide covers everything from building confidence to researching your market. It explains finance options and how self-employment affects your benefits. Most importantly, it’s written for real people facing real challenges.
Pick up your copy at any of the 600 jobcentres across the UK. Or speak to one of 25,000 specialist work coaches who can talk you through your options.
Who actually gets these loans?
You might think business loans are only for people with spotless credit scores and hefty savings. That’s not true here.
Since 2012, the Start Up Loans programme has supported thousands of people traditional lenders rejected. According to The British Business Bank, 22% of loans went to previously unemployed people, 40% to women, and 20% to people from ethnic minority backgrounds.
The programme helps 11,000 new businesses launch every year. These aren’t just statistics. They’re real people who decided to take control of their future.
Traditional banks often say no to people on low incomes. Start Up Loans takes a different approach. They look at your potential, not just your current circumstances.
What lenders actually want to see
Let’s be honest about what improves your chances. Sugar-coating this won’t help you.
- Do your homework on the market. Who are your customers? Who are your competitors? What makes you different? Lenders want evidence you’ve thought this through properly.
- Get real about money. Create a cash flow forecast showing how money moves in and out of your business. This trips up most applicants, so don’t wing it. Ask for help from a Start Up Loans delivery manager.
- Prove people want what you’re selling. Customer surveys work. So do pre-orders or letters of intent. Market research reports help too. Anything that shows genuine demand.
- Be upfront about challenges. Got health issues like Kristian? Explain how you’ll work around them. Lenders respect honesty and problem-solving more than false optimism.
- Write a proper business plan. Include your business model, marketing strategy, and financial projections. Be specific about what the £25,000 will buy and how it’ll generate income. Vague plans get rejected.
The support doesn’t stop at the cheque
Here’s what makes this different from a normal bank loan. You get ongoing mentoring and guidance after receiving the money.
Kristian worked closely with British Business Bank Delivery Manager Greg Tipper:
He helped us create a realistic cash flow forecast, which we had never done before. It wasn’t our strong point, so having that support was great.
Your local jobcentre work coaches understand the jump from unemployment to self-employment. They can help you figure out the practical stuff like how your new business affects benefits.
Local growth hubs offer additional advice for new ventures. The Business Support Helpline (0800 998 1098) provides free guidance when you hit a stumbling block.
Why self-employment matters right now
Solo self-employed workers pumped £366 billion into the UK economy in 2024. That’s up from £331 billion the year before. On average, each person contributed £87,142.
The economy needs more startups. More businesses mean more jobs and stronger communities. Secretary of State for Work and Pensions Pat McFadden puts it plainly:
Starting your own business can be a powerful way to take control of your future, particularly after a period of unemployment.
Louise McCoy, Managing Director at Start Up Loans, agrees.
We need more startups in the UK to boost growth and create jobs across the UK. By getting the Fresh Start Guide in front of unemployed people, we could make a real difference.
Ready to take the first step?
Download the Fresh Start Guide right now. It walks you through every stage of starting your business.
Visit your local jobcentre to speak with a work coach face-to-face. They can assess your situation and point you toward the right support.
Contact Start Up Loans directly to discuss your eligibility. Their team will guide you through the application without the jargon.
Call the Business Support Helpline on 0800 998 1098 for free business planning advice.
Kristian’s final advice?
Seek support. You don’t have to do it all alone. We’re both still learning every day, but feeling like a valued part of society is a great feeling.
Unemployment doesn’t define you. Your next chapter might just be your best one yet.
If you happen to visit Vine & Vibe, please say hello from The Freelance Informer team and send us pics to spread their good vibes. Ask what their London Fog drink is all about…
We hope you enjoyed this article.
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