Published: October 2nd, 2022
- 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
- Since 2012, the Start Up Loans programme has delivered more than £900 million worth of funding to entrepreneurs nationwide
Providing vital support to start ups during a challenging economic period, the British Business Bank’s Start Up Loans programme has been expanded. 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 97,000 loans worth £900 million to new business owners across the UK 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.
Richard Bearman, managing director of Start Up Loans, 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 that hail from every corner of the country, with entrepreneurial ambitions across all industry sectors. Having delivered more than £900 million in loans highlights our continued efforts to help people from a diverse array of backgrounds achieve their business goals.”
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.”
