Home Business News Start up loans hits £1 billion milestone of loans to UK small businesses

Start up loans hits £1 billion milestone of loans to UK small businesses

by LLB Finance Reporter
13th Sep 23 6:27 am

Start Up Loans, part of the British Business Bank, has delivered more than £1bn of loans since its inception in 2012. The loans have been issued to 105,109 businesses, at an average of £9,547 per business.

Of those loans, London has received more than £200m in 21,614 loans across the capital. The average loan amount in London is £9,315.

The Start Up Loans programme provides a means of reaching under-represented groups who are excluded from mainstream finance by helping them start businesses.

Of the £1bn loans, nearly 40% have been lent to female business owners, with a total value of £371m, and 20% have been lent to people from Black, Asian and Other Ethnic Minority backgrounds (not including White Minorities), with a value of £201m.

Just 4% of the UK’s small businesses in 2021 were majority-led by people from an ethnic minority group and only 20% of new businesses had female founders according to The Rose Review.

Young people between 18-24 years old have received £106m (11%) in loans since the programme began.

Of the £200m loans to businesses in London, Hackney South and Shoreditch was the constituency to receive the highest amount of funding, with more than £5.5m going to over 600 businesses. West Ham received the second highest amount of funding, with £4.8m going to over 500 businesses.

One Start Up Loans recipient is Matt Everett, who borrowed £10,000 in July 2023 to grow Dragonfly Films a London-based video production company. The business uses state-of-the-art equipment and modern techniques to deliver high-end video content for businesses nationwide. Matt Everett took out a £10,000 loan to begin production of his own TV docu-series, ‘Weird Britain’.

Matt Everett said: “Start Up Loans has made my dream of establishing a production company a reality. Breaking into the production industry is notoriously challenging, especially for solo creators like me who lack industry connections. Setting up my own production company became my pathway into the industry.

“The loan played a vital role in funding ‘Weird Britain’ and propelling Dragonfly Films to new horizons. To fellow entrepreneurs, I encourage you to remember that with determination and the right support, your dreams are attainable.”

Small Business Minister, Kevin Hollinrake, said:“Across the UK, thousands of small businesses have now been supported by over a billion pounds in Start Up Loans.

“This crucial support is enabling enterprising companies like Dragonfly Films start and scale up their ventures, and I urge even more to follow in their footsteps.”

Richard Bearman, Managing Director, Start Up Loans said: “We’re proud to support aspiring entrepreneurs across the UK such as Dragonfly films, who’ve secured a loan to fulfill their aspiration in the production industry. Dragonfly films’ success is an example of the UK’s entrepreneurial spirit and I hope they inspire others who may be considering business ownership to look into their options.”

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