British Business Bank expands “vital” £900m Start Up Loans programme

Providing “vital” support to startups during a challenging economic period, Sheffield based British Business Bank’s Start Up Loans programme has been expanded.

It now includes startups that have been trading for up to three years and second Start Up Loans are now available to eligible businesses that have been trading for up to five years. The programme previously provided finance to startups which had been trading for up to two years.

Start Up Loans’ expansion follows the 2021/22 Spending Review, at which the government made the commitment to provide 33,000 loans to the programme over the next three years. The scheme has already delivered more than 97,000 loans worth £900m to new business owners across the UK since 2012.

Start Up Loans provides funding at a fixed interest rate of 6 per cent, as well as 12 months’ mentoring to its recipients, further supporting aspiring business owners in every corner of the United Kingdom. Start Up Loans’ impact has been particularly noticeable among individuals who might find it difficult to secure loans from traditional lenders.

One such business owner to have taken out a second loan with the programme is Victoria Orr, founder of Amandla Ubuntu from Hexham, Northumberland. Her business is a social enterprise selling South African arts & crafts that provide sustainable incomes to artists and crafters in their communities.

Having previously held a position as a senior executive in an education charity, and a handful of global leadership positions at large corporates such as Amazon and Marriott, Victoria realised she needed to do something more fulfilling.

She took out her first loan with Start Up Loans in June 2021 for £5,000, alongside £7,000 of her own savings. She then took out a second loan of £6,000.

She said: “The level of support I received when applying for my second loan was fantastic and is something I didn’t feel I’d get from other lenders. I used it to pay for additional exhibition display stands, a photography light studio and new stock, which made a huge difference to my sales in the run up to busy retail moments.”

Richard Bearman, managing director of Start Up Loans, added: “This extension of the programme will enable us to work with those businesses that had perhaps just got going when the pandemic hit, or are ready to consolidate and grow their businesses now that they are back on their feet.

“We want to ensure that these businesses do not get left behind. We have always been committed to providing support and funding to smaller businesses that hail from every corner of the country, with entrepreneurial ambitions across all industry sectors.”

By Matthew Neville – Correspondent, Bdaily

• Add me on LinkedIn and Twitter to keep up to date
• And follow Bdaily on Facebook, Twitter and LinkedIn
• Submit press releases to editor@bdaily.co.uk for consideration.

Looking to promote your product/service to SME businesses in your region? Find out how Bdaily can help →