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South West businesses benefit from £100m of Start Up Loans

Press release 26 November 2024

Smaller businesses in Somerset reach almost £13.5 million in lending.

South West businesses have benefitted from £100m of financing through the Start Up Loans programme, with Somerset businesses receiving over £13m of this support.

The Start Up Loans programme has a 12-year legacy of delivering funding to smaller businesses who may otherwise find it difficult to secure loans from traditional lenders. Entrepreneurs and businesses can access personal loans of up to £25,000 on a fixed 6% rate of interest to start up or grow their business. Through a partner, Newable, the programme also offers post loan support mentoring to loan recipients in their first year.

The programme has just marked a significant milestone: £100 million has been loaned to businesses spread across the towns and cities of the South West. More than 10,000 businesses across the region have benefitted from this financing and post loan support since its inception. These have ranged from cafés and music studios to clothing companies and microbreweries.

Of the counties across the South West, Devon businesses received the highest number of loans at 2,278 loans made since the programme’s inception, Cornwall and the Isles of Scilly are the second highest at 1,540 and Somerset was the third highest with 1,492 loans.

In Somerset, these loans equated to nearly £13.5m of financing to support start up businesses in the county.

CountyLoans MadeAmount Lent (£)
Devon2,278£22,927,933
Cornwall and Isles of Scilly1,540£16,176,902
Somerset1,492£13,450,606
Gloucestershire1,430£14,096,988
Dorset1,402£14,290,340
Wiltshire1,073£11,457,555
Bristol (City of)1,031£8,103,698
Total10,246£100,504,021

One of the latest businesses to benefit is Minnie Me’s, a salon specialising in neurodivergent clients in Castle Cary, Somerset.

Having a haircut is a regular necessity, a manicure perhaps a more occasional treat. However, both can present challenges for those with mental health or neurodivergent conditions including ADHD and autism.

Having worked as a stylist for seven years, Antonia-Michelle Lever opened the salon backed by mental health charities MIND and the National Autistic Society, inspired by her own experience. She is open about her own mental health difficulties.

Pointed in the direction of the Start Up Loans programme by a family friend, Antonia borrowed £6,000 from the programme via its Business Support Partner GC Business Finance. The funding allowed her to complete renovations and decorate her premises, helping to get the doors open as quickly as possible.

Alex Mearns, Head of Startup Lending at GC Business Finance, said:

The idea behind Minnie Me’s is not only entrepreneurial-minded, but such a brilliant way to make sure the neurodivergent community in Castle Cary feel welcomed when getting a haircut or beauty treatment. We were so excited to be able to provide funding to a business that has such a strong community impact, and the success Antonia has experienced since receiving a Start Up Loan is really impressive. We can’t wait to see what’s next for her!

Louise McCoy, Commercial Managing Director, Small Business Lending at the British Business Bank said:

We’re thrilled that the Start Up Loans programme has delivered over £100m of funding to 10,000 businesses across the region since its launch. The programme aims to expand access to funding for entrepreneurs looking to start-up and grow and this latest milestone is testament to the ambition of the South West’s entrepreneurs. Businesses like Minnie Me’s deliver a wide range of products and services to their communities and contribute to the economic vitality of their areas.

The Start Up Loans programme helps people start or grow their business and is part of the government-owned British Business Bank’s remit to make finance markets work better for smaller businesses. They can borrow up to £25,000 at a fixed interest rate of 6% per annum and repay the loan over one to five years. The programme also provides 12 months of free business mentoring which is delivered through its post loan support partner. In the South West, the programme is supported primarily by SWIG Finance but also national programme partners such as GC Business Finance.

Learn more about Start Up Loans support.

Further Information

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