$14.6 million Startup Year loan scheme now open to student entrepreneurs

The next phase of the Australian Government’s ‘Startup Year’ loan scheme is underway, with expressions of interest opening for a targeted pilot.

The $14.6 million Startup Year program is designed to offer income-contingent loans to 2000 students through the existing Higher Education Loan Program (HELP) system. These new STARTUP-HELP Loans can be up to $11,800 and are aimed at students enrolled in accredited university accelerator courses to develop their business ideas.

Talk about the scheme has been floating around since mid-2022, but the idea itself was first proposed by Labor back in 2015. A consultation paper into the scheme was already released back in September 2022.

The scheme is available to recent graduates as well as postgrads and undergrads in their final year of study.

“It is anticipated that there could be models whereby the Startup Year course can be undertaken in parallel with a reduced undergraduate load, or the Startup Year course may be a full-time load and undertaken when the student is not taking any undergraduate units,” the website reads.

The inaugural Startup Year pilot program will be used to test the program design, as well as assess student demand and the university’s capacity to deliver.

The Department of Education will select course providers not only based on its courses but also innovation, and the ability to meet the needs of underrepresented groups and add to the Startup Year ecosystem through geographic and participant diversity.

“We want our next generation of businesses to grow from the ideas and energy of young Australians. And we want Startup Year to help make that happen,” Minister for Industry and Science, Ed Husic, said last year.

“By expanding access to vital capital and startup programs, we will help diversify the talent and skills pipeline so that new ideas can come online from all corners of the Australian community.

“It will strengthen links between our universities, industry and the startup community, leading to greater research translation and commercialisation.”

Expressions of interest are now open and will run until 11.50pm AEST on Sunday, August 27.

Allocation of places in the STARTUP-HELP programs will happen in two stages — the initial expressions of interest, followed by a full application for those who are shortlisted.