The Start Up Loan scheme has provided funding to more than 55,000 entrepreneurs since the launch of the programme in 2012, new figures reveal.
A Start Up Loan is a Government-backed personal loan available to individuals looking to start or grow a business in the UK.
It varies slightly to a traditional business loan, in that the funding is not backed by assets or guarantors to support an application.
All owners or partners in a business can individually apply for £500 to £25,000 each with a one to five-year loan repayment term.
In addition, recipients also receive 12 months of free mentoring and exclusive business offers to help them succeed.
To date, over 55,000 businesses have been helped with more than £400 million of finance through the scheme – creating 66,000 jobs in the process.
The Government has also commented on its success in offering people from disadvantaged backgrounds the opportunity to grow an idea into a profitable business.
Its research shows that around one in five loans have gone to black, Asian and ethnic (BAME) minority entrepreneurs since the launch of the scheme, giving around 11,000 individuals a shot at starting their own company.
Commenting on the figures, Business Minister Richard Harrington said: “Through our efforts to create a fairer society, we are ensuring that entrepreneurs from all backgrounds can access the finance they need to make their businesses grow and succeed.
“The government is continuing to look at new ways to tackle racial inequality in our society and make sure that everyone has the same opportunities to progress.”