The government-backed Start-up Loans Scheme has seen a rapid rise in interest, with 7,000 applications in less than month.
James Caan, chair of the Start-up Loans Company who founded the scheme, said the scheme had recently handed out around £500,000 in loans in a single week.
It is hoped this will help put over 100 startups on the road to success.
Through the scheme, entrepreneurs can apply to take out a loan of up to £2,500 to help get their venture off the ground.
Interest had previously been dwindling, with only 3,000 applications since the project was launched in September last year.
However take-up has been bolstered by a cash injection of £30 million. In addition David Cameron raised the upper age limit to include entrepreneurs up to the age of 30 in January.
The Prime Minister has previously spoken of the importance of young people actively pursuing their entrepreneurial ambitions
At a speech in Preston he said: “I believe this surge we are seeing from young people starting their own businesses is simply the beginning of an emerging and lasting trend in entrepreneurship in Britain.
“Self-employment and small business is the heart-beat that keeps us ticking and in today’s economy I am delighted to see so many young people have the confidence to take their future into their own hands.”