Start Up Loans passes £600m funding milestone, delivering more than 68,559 loans
The British Business Bank’s Start Up Loans programme today announces it has passed a major milestone of £600m worth of loans delivered outside of London, providing 68,559 loans to entrepreneurs outside of the Capital since its launch in 2012.
Start Up Loans provides mentoring, support and funding to aspiring business owners in every corner of the United Kingdom and its impact has been particularly noticeable among individuals who might find it difficult to secure finance through traditional lenders.
The North West received the highest number of loans outside of London with a volume of 10,881 (12%) worth over £94m. The South East received 8,378 loans (10%) worth over £81m, followed by Yorkshire & The Humber where a total of 7,497 loans (9%) were provided at the value of over £68m. These figures reflect the regional diversity of entrepreneurialism across the country and highlight the success of the programme in supporting SMEs that reside outside of the entrepreneurial hub of London.
Recipient of the 600 millionth pound
The recipient of the 600 millionth pound from the Start Up Loans programme was Will Smith, from Northern Ireland. He took out a loan of £6,000 in January 2020 to launch Woodwork by Will – a bespoke wood furniture company. He used the money to invest in essential machinery and a table saw.
Prior to receiving the loan, he was using a friend’s machinery for some of the bigger jobs, which was logistically complicated. Now that he has his own machinery, a job that would have taken three days can be completed in just half a day.
Will Smith, founder of Woodwork by Will, said: “The support I have received from the British Business Bank has accelerated my business 12 months beyond where it would have been.
“I found the whole process with the Bank very straightforward and would have no hesitation in recommending Start Up Loans to other entrepreneurs. I would go as far as saying that if you are serious about growth, this type of investment early on is essential, provided you are determined to put the work in.
“The mentoring elements would particularly suit someone who is starting their own business but doesn’t necessarily have a business background. I was offered mentoring from successful entrepreneurs on areas such as marketing, legal issues and insurance that kept me on the right track from the start.
“I had planned moving forward to take on bigger projects such as kitchens, fit out projects etc and now my goals are much more realistic.”
Richard Bearman, managing director of Start Up Loans, said: “Providing £600m worth of funding to new businesses outside of London is a huge milestone for the government backed Start Up Loans programme and reflects the broad diversity and ambition of the nation’s small businesses at a grass roots level across the whole country.
“We have always been committed to providing support and funding to smaller businesses that hail from each corner of the country, particularly in areas of deprivation where people may struggle to access funding, and this milestone is tribute to that.
“We are proud that our loans, mentoring and support for aspiring and existing entrepreneurs is helping to support the Build Back Better agenda and we’re delighted to have been able to help Will make his dream into a reality”.
Breakdown of loans by region excluding London
|UK Region||Loans Made||Amount Lent (£)||Average Loan Amount (£)|
|East of England||6,106||55,471,473||9,085|
|Yorkshire and The Humber||7,497||68,748,296||9,170|
|Region not obtained||185||2,164,521||11,700|
Start Up Loans figures up to 31 August 2021.