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British Business Bank expands Start Up Loans programme in East Midlands

British Business Bank expands Start Up Loans programme in East Midlands

Providing vital support to the UK’s start ups during a challenging economic period, the British Business Bank’s Start Up Loans programme has been expanded.

  • Loans now available to start-ups that have been trading for up to three years
  • Second loans now available for businesses that have been trading for up to five years
  • More than £49m of Start Up Loans delivered to entrepreneurs in the East Midlands Since 2012

It now includes start ups that have been trading for up to three years and second Start Up Loans are now available to eligible businesses that have been trading for up to five years. The programme previously provided finance to start ups which had been trading for up to two years.

Start Up Loans’ expansion follows the 2021/22 Spending Review, at which the government made the commitment to provide 33,000 loans to the programme over the next three years. The scheme has already delivered more than 5,400 loans worth more than £49m to new business owners in the East Midlands since 2012.

Start Up Loans provides funding at a fixed interest rate of 6%, as well as 12 months’ mentoring to its recipients, further supporting aspiring business owners in every corner of the United Kingdom. Start Up Loans’ impact has been particularly noticeable among individuals who might find it difficult to secure loans from traditional lenders.

Sophie Dale-Black, Director, UK Network – Midlands and North of England, said:

“We are delighted to be able to extend the reach of the Start Up Loans programme to help support businesses, including those who need extra support during a challenging economic environment This extension of the programme will enable us to work with those businesses that had perhaps just got going when the pandemic hit, or are ready to consolidate and grow their businesses now that they are back on their feet. We want to ensure that these businesses do not get left behind.

“We have always been committed to providing support and funding to smaller businesses across the UK, with entrepreneurial ambitions across all industry sectors. Having delivered more than £49m in loans to the East Midlands alone highlights our continued efforts to help people from diverse backgrounds achieve their business goals.”

Jacob Rees-Mogg, Business Secretary said:

“The East Midlands has a well-deserved reputation as a great place to start and run a business, with over half a million companies of all shapes and sizes currently operating in the region.

“The Start Up Loans Scheme has provided the innovative, creative, and dynamic small businesses of the East Midlands with £48million, to help them through a very challenging time, and this expansion will enable them to go even further in providing their goods and services.”

Martin McTague, Federation of Small Businesses National Chair, said: 

“The small business community shrank by 400,000 in the first year of the pandemic.  As the new Government focuses heavily on economic growth and supporting enterprise, a major element of that will be encouraging a new wave of start-ups - the next generation of entrepreneurs from every diverse background, in all our local communities.  So we welcome today’s announcement as it will help more people to start-up, and scale-up.”

 

Breakdown of loans by region

UK Region

Loans Made

Amount Lent (£)

Average Loan Amount (£)

East Midlands

5,468

49,820,763

9,111

East of England

6,893

65,561,712

9,511

Isle of Man

3

12,500

4,167

London

20,474

187,085,791

9,138

North East

5,313

48,138,743

9,061

North West

12,019

108,464,154

9,024

Northern Ireland

1,495

12,764,845

8,538

Scotland

6,309

55,574,315

8,809

South East

9,626

97,040,179

10,081

South West

8,328

75,798,566

9,102

Wales

4,376

43,526,310

9,947

West Midlands

8,031

73,671,613

9,173

Yorkshire and The Humber

8,490

81,181,195

9,562

Region not obtained

444

5,478,723

12,339

Grand Total

97,269

904,119,406

9,295

 

Start Up Loans figures measured up to 31 August 2022.

About Start Up Loans

The Start-Up Loans Company, part of the British Business Bank, was formed in June 2012. The Start Up Loans programme provides personal loans for business purposes of up to £25,000 at a 6% fixed interest rate per annum and offers free dedicated mentoring for 12 months and support to each business. 

The primary aim of the Start Up Loans programme is to ensure that viable start-ups and early-stage businesses have access to the finance and support they need in order to thrive. A network of Delivery Partner organisations support applicants in all regions and industries throughout the UK. The Start Up Loans programme is not designed to generate a commercial profit. Capital payments together with the interest are recycled to help meet our customers’ increasing demand for finance.

Free guides on a range of subjects related to starting a business are available on the Start Up Loans website: https://www.startuploans.co.uk/free-start-up-guides/ You can find recent media coverage and press releases in the Start Up Loans Media Centre here: https://www.startuploans.co.uk/media-centre/. 

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