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Government-backed Start Up Loans programme reaches £100m lending milestone in both the South West and Yorkshire and the Humber supporting more than 20,000 businesses

Press release 26 November 2024

Start Up Loans provides £200m of start up financing to businesses in the South West and Yorkshire and the Humber.

The Start Up Loans programme today announces that it has crossed two £100m lending milestones at opposite ends of the country.

The programme, which is part of the British Business Bank – the UK’s economic development bank – has crossed the milestones in the South West and in Yorkshire and the Humber.

Together it means around 20,000 government-backed loans have gone out in these regions to support start up or early-stage businesses.

Across each region the hospitality sector was the most popular sector for start up financing, with £22.7m of the total going to businesses including cafes, hotels, restaurants.

The next two most popular sectors were: wholesale and retail and construction, receiving £16.1m and £9.6m respectively.

The programme has also supported approximately 500 manufacturing businesses across the South West and Yorkshire and the Humber combined.

In the South West, professional, scientific and technical, manufacturing and human health and social work were the next most popular sectors, with each receiving more than £3m each.

In Yorkshire and the Humber, professional, scientific and technical, human health and social work and manufacturing were the next most popular sectors, each receiving more than £3m of Start Up Loans.

The latest data from the programme shows that Yorkshire and the Humber and the South West are the fourth and fifth most popular UK Nations or regions for Start Up Loans financing. The more populous London, North West and South East make up the top three, however around 70% of the finance goes to Nations and regions outside of London and the South East.

 

Richard Bearman, Co-Chief Banking Officer at the British Business Bank commented:

Reaching these significant milestones shows we support businesses the length and breadth of the country.

Creating the opportunity for people from all walks of life to start up a business is a great way to share the benefits of growth equally. We know this is something the government wants to do and we are delighted to be doing our bit to help the economy and to create opportunities for people.

Small Business Minister Gareth Thomas said:

That initial injection of cash is critical for any small business trying to get underway. I’m pleased that so many SMEs across the South West and Yorkshire and Humber are now reaping the benefits of this targeted support.

When small firms get the chance to start up and grow, it can unleash a tidal wave of opportunity, providing jobs for local communities, boosting revenues and helping grow the economy.

ENDS

Further Information

If you are a journalist and have a media enquiry, please contact [email protected].

Notes to editors

About Start Up Loans

The Start Up Loans programme is operated by The Start-Up Loans Company, a company limited by guarantee, registered in England and Wales, registration number 08117656, registered office at Steel City House, West Street, Sheffield, S1 2GQ.  

The Start-Up Loans Company is a wholly owned subsidiary of British Business Bank plc.   

British Business Bank plc is a development bank wholly government-owned by DBT and 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.  

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).

Key Statistics

  • Since its inception in 2012, the Start Up Loans scheme has delivered over 115,000 loans, providing more than £1.1bn of funding.
  • In the financial year 2023/24, the scheme provided 9,759 loans with a total value of approximately £125m.
  • The economic benefits of the Start Up Loans programme are almost six (5.7) times its economic costs.

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. 40% of loan recipients were women and 20% were from ethnic minority groups (not including white minorities). 

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