- The Start Up Loans programme lends more than 60,000 loans to fund small businesses since 2012
- Almost 40% of loan recipients are women
- 22% of loan recipients come from BAME backgrounds
- North West has the highest number of loans outside of London
Today (20 June 2019) Andrew Stephenson MP for Pendle and Minister for Business and Industry, attended the British Business Bank’s parliamentary drop-in to celebrate its Start Up Loans scheme lending more than £500 million to UK small businesses since it was set up in 2012.
New data from the Government-backed scheme shows it has issued a total of 63,920 loans to fund small business across the UK, with the average loan amounting to £7,823.
In Pendle specifically, SUL has issued 87 loans, worth £625,643.
Of those who received a loan, almost two-fifths (39.3%) were women, one in five (22%) came from Black, Asian and Minority Ethnic communities (BAME), and more than a third (36.5%) were unemployed when they applied for the loan, reflecting the diversity of the UK start up community.
The Start Up Loans programme, part of the British Business Bank, has lent money and provided mentoring support to aspiring business owners in every part of the country and its impact has been particularly noticeable in areas of deprivation.
A Start Up Loans Heatmap, which goes live on Thursday 20 June, shows the regional breakdown of the £500m, and that the North West region was given the highest number of loans outside of London, receiving 7,841 loans worth £60 million. The South East follows with 5,680 loans worth £48 million followed by Yorkshire and The Humber with 5,377 loans worth £44 million. There were 3,879 loans in Scotland worth £29 million and 2,904 loans in Wales worth £26 million.
People supported by British Business Bank’s Start Up Loans have used the funding to set up businesses in a wide range of sectors. As well as finance, every loan recipient is offered a dedicated mentoring service and access to a free expert business mentor for 12 months to help them with every aspect of setting up a business.
They include a couple from Cumbria who opened Cut the Wrap!, a plastic-free supermarket; a father from Manchester who created Naturelly, a brand of healthy snacks for children; and a refugee who set up her own business making halloumi cheese in Yorkshire after fleeing Syria with her family.
Others include a woman in Scotland who set up Aberdeen’s first made-to-order grilled cheese sandwich shop after being made redundant twice in a year; a former marine biologist from North Shields who created an online business selling products made from seaweed; and a woman from Ulster who used the funding to turn a waste ground into a wildlife centre for children.
Andrew Stephenson MP said, “I am delighted the Start Up loans have been able to support 87 small businesses across Pendle. Small Businesses are the bed rock of our economy and the Government is committed to doing everything it can to support them. Enabling them to expand and provide employment opportunities across our whole community.”
The Start Up Loans programme passed the £500m milestone after awarding a £25k loan to Mitch’s Kitchen, an online shop which delivers home-cooked frozen meals which are 100% vegan and free from gluten, nuts, palm oil and pesticides. Launched last November by Mitch Lee, 29, and his wife, Shirin, 28, from Fareham, Hampshire, the business is hoping to challenge the stereotype of ready-meals with its range of dishes including buckwheat jambalaya, rainbow sushi bowl and chocolate chilli.
Patrick Magee, Chief Commercial Officer of the British Business Bank, said:“We’re absolutely delighted that we have supported so many fantastic small business owners from up and down the country. The hard work and determination of the UK’s 5.7 million small businesses make a huge contribution to society, and it’s great to see latest research showing that the economic benefits of the Start Up Loans programme are nearly six times its economic costs.
“We’re committed to helping small businesses prosper and grow and we look forward to supporting many more in the future.”
Kelly Tolhurst, Minister for Small Business, said: “It is a great cause for celebration that Start Up Loans has surpassed the £500m loans landmark today. This represents thousands of people who were helped to follow passion and start their own businesses, helping to create new jobs and boost economic growth across the UK.
“Small businesses are the lifeblood of our economy and a key part of a modern Industrial Strategy is building a Britain that encourages people to start their own business whatever their background.
“Start Up Loans is critical in allowing people across the country to follow their passion, become their own boss, create opportunities in their communities and contribute to Britain’s thriving small business sector.”
The Evaluation of Start Up Loans: Year 3 Report is available on the British Business Bank website.