Growth boost for small business

SMALL businesses will be offered new ‘growth loans’ by the Government as part of the Prime Minister’s efforts to pull the economy out of the doldrums.

Liz Truss announces in the MoS today an extension of the Government’s Start-Up Loans programme – which offers support and funding to new businesses – to cover companies which have been running for up to five years.

The Start-Up scheme – which was established to help firms in their earliest stages – has provided more than 90,000 loans since its inception in June 2012.

The loans are subject to a fixed interest rate of six per cent, and the programme provides support – and discounts on products for businesses – to those who might find it difficult to secure funds from traditional lenders.

In her article, Ms Truss says: ‘I am on the side of all those who take responsibility and do the right thing, from setting up their own businesses to working hard and aspiring for a better life for themselves and their family. Our clear plan will help them to thrive.

‘I know how hard it has been for small businesses. They are the lifeblood of our economy. When small businesses succeed, Britain succeeds too.’

Business Secretary Jacob ReesMogg said: ‘This Government is relentlessly focused on driving growth to create better jobs, boost wages and fund our vital public services like the NHS.

‘Encouraging entrepreneurship and new businesses to thrive is critical to growing the economy and raising living standards. From a hair salon in Wales, to a furniture business in Northern Ireland and a cake seller in the Lake District, expanding the Start-Up Loans scheme will support these small businesses through this challenging period and position them to grow – creating jobs and opportunities across the UK.’