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Cheshire businesses thrive following £6m of Start Up Loans support

Press release 12 August 2024

The Start Up Loans programme, part of the British Business Bank, announces that it has provided 544 loans worth £6m to businesses in Cheshire West and Chester, highlighting its dedication to supporting businesses in the North West. 

Of all the Start Up Loans provided in the North West, 39% went to female-founded businesses, totalling over £2m. In addition, 62 loans in the region went to entrepreneurs aged between 18-24 years old, amounting to more than £455,000, demonstrating the Bank’s commitment to supporting underrepresented founders.

Recent Start Up Loan recipients in the North West include a vegan-friendly craft beer brewery, a rail recruitment agency and a renewable energy fitting company.

Since the Start Up Loans programme began in 2012, businesses across the North West have received nearly £140m of Start Up Loans financing. This means the region has received more than the South East of England, and is second nationally only to London in terms of the value of loans provided to businesses under three years old.

The positive impact the Start Up Loans programme has had and is having on the small business ecosystem in Cheshire West and Chester is evident through the £6m of funding we have delivered to businesses across the region. We've reached groups that have previously struggled to access funding, with female-led businesses receiving 39% of the total loans provided. 

This demonstrates the importance of targeted funding like the Start Up Loans programme in supporting businesses in areas and to people who have been previously underserved in terms of financial support. The entrepreneurial talent in this region is evident through its flourishing small business community and I’m sure we will see a lot more success from these businesses over the next few years.

- Delyth Edwards Senior Network Manager for the North West at the British Business Bank

Layers Treats, Chester-based Start Up Loan recipient 

Tom Newey, aged 22 is just one of these recipients. Established in 2020, award-winning dessert business, Layers Treats offers handmade Belgian chocolate treats for all occasions. After deciding the classroom environment was not for him, Tom deferred his place at university and began learning how to make handmade chocolate. This hobby soon became a full-time business, attracting masses of customers and achieving impressive growth each year. 

Three years in, Tom approached The British Business Bank for a Start Up Loan to scale-up the business further and purchase an Airstream catering trailer. This allowed him to continue producing treats during the summer months despite hotter weather and attend weddings, festivals and corporate days to serve hot and cold desserts. The business was recently awarded best desserts maker in Cheshire and has ambitious plans for the future as it continues to deliver unique desserts to customers across the UK. 

After leaving sixth-form college, I initially planned to study business at the University of Durham but decided to defer my place. I struggle with dyslexia so decided the classroom environment was not my style of learning. During this time, I discovered my love for chocolate making which soon became a full-time business.

Navigating growing a business and accessing finance as a young entrepreneur can be challenging but the British Business Bank made the process simple, helping myself and the business achieve what it has so far. Without the personalised support I received during the application process, I probably wouldn’t have completed the application. I am proud of what Layers Treats has achieved so far and look forward to growing the business further and achieving even more success as a young entrepreneur.

- Tom Newey Founder, Layers Treats

ENDS

Further Information

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Notes to editors

About Start Up Loans

The Start Up Loans programme provides personal loans for business purposes of up to £25,000 at a 6% fixed interest rate per annum and offers free dedicated mentoring and support to each business.

The primary aim of the Start Up Loans programme is to ensure that viable start-ups and early-stage businesses have access to the finance and support they need in order to thrive. A network of Business Support Partner organisations supports applicants in all regions and industries throughout the UK. The Start Up Loans programme is not designed to generate a commercial profit. Capital payments together with the interest are recycled to help meet borrowers’ increasing demands for finance.

Free guides on a range of subjects related to starting a business and recent media press releases are available on the Start Up Loans website.

The funding for the Start Up Loans programme is provided by the Department for Business and Trade (DBT). A development bank wholly government-owned by DBT, the British Business Bank plc is not authorised or regulated by the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA). The British Business Bank and its subsidiary entities are not banking institutions and do not operate as such.

The British Business Bank makes finance markets for smaller businesses work better, helping the sector to prosper, to grow and to build economic activity.

Key Statistics

  • Since its inception in 2012, the Start Up Loans scheme has delivered over 100,000 loans, providing more than £960m of funding.
  • In the financial year 2022/23, the scheme provided 9,549 loans with a total value of approximately £120m.
  • The economic benefits of the Start Up Loans programme are almost six (5.7) times its economic costs.
  • At Spending Review 2021, the Chancellor announced resources to provide 33,000 Start Up Loans over next three years.

Aside from the return-on-investment numbers these statistics are gross estimates and based on Start Up Loans CRM along with externally commissioned research undertaken by SQW Ltd, with support from BMG Research.

Since 2012, 31% of loans went to people formerly unemployed or economically inactive. Some 40% of loan recipients were women and 21% were from ethnic minority groups (not including white minorities).

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