£250 million of Start Up Loans have been made available to entrepreneurs, Business and Energy Secretary Greg Clark announced.
Since 2012, Start Up Loans worth a quarter of a billion pounds have been agreed with start-up businesses to support them in getting up and running with finance and support.
Funded by government through the British Business Bank, Start Up Loans generate a return on investment to the economy of £3 for every £1 spent. Businesses up and down the country from digital start-ups to recreational centres have benefitted from the government scheme.
Business and Energy Secretary Greg Clark said: Whether you live in England, Wales, Scotland or Northern Ireland, and whatever your age, everyone should have the chance to turn a great business idea into a reality.
British entrepreneurs and small businesses are the backbone of our economy. This government will build on the success of Start Up Loans to give entrepreneurs the support and opportunities they need to start a business, grow it in Britain and turn it into a global success story.
Small Business Minister Margot James said: Small businesses play a vital role in local communities, bringing them together and giving millions of people good jobs and livelihoods. With 1 in 5 Start Up Loans going to deprived areas in the UK, they are one of the many tools we have to build an economy that works for all.
At the start of 2016, there were a record 5.4 million small and medium-sized enterprises (SMEs) in the UK, creating more than 15 million jobs and contributing £1.8 trillion to our economy.
Enterprise Nation founder, Emma Jones, said: Start Up Loans have plugged an essential gap for new businesses looking for funds. We’ve heard from hundreds of start-ups who not only benefit from the money, but also the mentoring that comes with it. The UK continues to witness record start-up rates and the Start Up Loans Company has been a key enabler of this; helping people across the UK to take an idea and give self-employment a go. We look forward to continuing to support these new found businesses to grow!
Half of all Start Up Loans for people aged 18 to 24 go to those formerly not in employment, education or training (NEET) and 1 in 5 Start Up Loans go to deprived areas in the UK.
Tim Sawyer, CEO of Start Up Loans Company, said: SMEs drive our economy, and the role start-ups play in this shouldn’t be over-looked. Seeing such a great demand for finance from Britain’s would-be micro-business owners is a great indication of the appetite for growth in this sector.
Hitting our £250 million lending milestone is a significant landmark for Start Up Loans Company. Since the launch almost 4 years ago our loans have helped create more than 45,100 jobs and for every pound invested we have returned £3 to the economy overall. 2016 has proven to be another busy year for microbusinesses, and we’re proud to be able to support this growth.
The Start Up Loans Company not only offers fixed rate loans of up to £25,000 but also provides access to free business support for people starting out for the first time in business.