Gov’s Start Up Loans programme hits £250m milestone

The government’s Start Up Loans scheme has made £250m available to entrepreneurs since its launch four years ago, according to new figures.

Business and Energy Secretary Greg Clark today (August 31) revealed that the programme, set up in 2012, has hit the quarter of a billion milestone while helping to create over 45k jobs.

Funded through the British Business Bank, the government’s Start Up Loans are estimated to generate around £3 in the economy for every £1 spent.

Further, half of the loans for people aged 18 to 24 went to those formerly not in employment, education or training, and around a fifth went to entrepreneurs in deprived areas.

Government figures show that at the beginning of 2016, there were a record 5.4m SMEs operating in the UK, maintaining over 15m jobs and contributing around £1.8tn to the economy.

Mr Clark said: “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 commented: “Small businesses play a vital role in local communities, bringing them together and giving millions of people good jobs and livelihoods.

“With one in five 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.”

Tim Sawyer, the chief exec of Start Up Loans Company, which runs the programme, said: “SMEs drive our economy, and the role startups play in this shouldn’t be over-looked.

“Seeing such a great demand for finance from Britain’s would-be microbusiness owners is a great indication of the appetite for growth in this sector.”

He continued: “Hitting our £250m lending milestone is a significant landmark for Start Up Loans Company.

“Since the launch almost four years ago our loans have helped create more than 45.1k 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.”

In addition to providing fixed-rate loans of up to £25k, The Start Up Loans Company offers access to free support for those starting out in business for the first time.