More than £600 million in Start Up Loans have been delivered to businesses based outside the capital, a major study has revealed.
The Department for Business, Energy & Industrial Strategy (BEIS) said the scheme has improved access to finance across the country.
Here’s what you need to know.
What is the Start Up Loans scheme?
Launched in 2012, the Start Up Loans initiative provides finance and mentoring to the smallest of businesses that would otherwise struggle to access traditional forms of finance.
Start-ups and small business owners can apply for personal loans of up to £25,000 at a six per cent fixed interest rate per annum.
The British Business Bank (BBB), which administers the scheme, also provides business support to minority and disadvantaged groups, including women entrepreneurs, entrepreneurs from ethnic minority backgrounds and the previously unemployed.
Scheme helps businesses based across the country
The figures suggest that the scheme helps businesses based across the UK, rather than just those in London where finance is disproportionately focused.
According to the report, some £600 million in loans has been delivered to businesses outside the capital, including £94 million to firms based in the North West of England, £81 million to those in the South East, and £68 million to those in Yorkshire & The Humber.
The study also reveals that 40 per cent of Start Up Loans have gone to women business leaders, 20 per cent to people from an ethnic minority background, and 35 per cent to those who had previously been unemployed.
“Programme has helped a diverse range of entrepreneurs”
Commenting on the report, Richard Bearman, Managing Director of Start Up Loans, said: “We have always been committed to providing support and funding to SMEs 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.”
Small Business Minister Paul Scully added: “The Start Up Loans programme has helped a diverse range of entrepreneurs across the UK to get their business ideas off the ground, levelling up the entire country and enabling talented business leaders from all backgrounds to flourish.”
How to apply
To apply for a Start Up Loan, you must be 18 years of age or older, a UK resident with a new business based in the UK and have been trading for less than 24 months.
Click here to learn more about the Start Up Loans scheme.
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