Loan scheme injects £66m into new West businesses
More than £66 million has been lent to new South West businesses under the Government’s Start Up Loans scheme, it has been revealed.
The British Business Bank, which runs the programme, said it has made more than £600m available to enterprises outside London, providing 68,559 loans to entrepreneurs in the provinces since its launch in 2012.
The South West alone received 7,487 loans, nine per cent of the total, at the value of more than £66m.
Start Up Loans provides mentoring, support and funding to aspiring business owners across the UK and its impact has been particularly noticeable among individuals who might find it difficult to secure finance from traditional lenders, the British Business Bank said.
Luke Craven, 25, from Malmesbury in Wiltshire, took out a loan for £21,000 in January to launch Bijimini Spices – a company that creates interesting and tasty spices made from crickets and insects.
Mr Craven said: “The support I received from Start Up Loans was invaluable. I used the loan to cover all my start-up costs, including buying ingredients, paying for a graphic designer, a web developer and much, much more.
“I had been made redundant from my role in sales and it seemed like the perfect opportunity to take control and become my own boss.”
The Start Up Loans programme is funded by the Department for Business, Energy and Industrial Strategy (BEIS) and is delivered by the Start Up Loans Company (SULCO), a subsidiary of the British Business Bank.
It aims to encourage entrepreneurship in the UK, increase the rate of business creation and improve survival prospects. The programme offers loans from £500 to £25,000, at six per cent interest alongside free mentoring and support to individuals who are starting a new business or who have been trading for less than two years.