British Business Bank expands Start Up Loans programme
- Loans now available to start ups that have been trading for up to three years
- Second loans now available for businesses that have been trading for up to five years
- Since 2012, the Start Up Loans programme has delivered more than £900 million worth of funding to entrepreneurs nationwide
Providing vital support to start ups during a challenging economic period, the British Business Bank’s Start Up Loans programme has been expanded. It now includes start ups that have been trading for up to three years and second Start Up Loans are now available to eligible businesses that have been trading for up to five years. The programme previously provided finance to start-ups which had been trading for up to two years.
Start Up Loans’ expansion follows the 2021/22 Spending Review, at which the government made the commitment to provide 33,000 loans to the programme over the next three years. The scheme has already delivered more than 97,000 loans worth £900 million to new business owners across the UK since 2012.
Start Up Loans provides funding at a fixed interest rate of 6%, as well as 12 months’ mentoring to its recipients, further supporting aspiring business owners in every corner of the United Kingdom. Start Up Loans’ impact has been particularly noticeable among individuals who might find it difficult to secure loans from traditional lenders.
Case study: Victoria Orr, founder of Amandla Ubuntu from Hexham Northumberland
One such business owner to have taken out a second loan with the programme is Victoria Orr, founder of Amandla Ubuntu from Hexham Northumberland. Her business is a social enterprise selling South African arts & crafts that provide sustainable incomes to artists and crafters in their communities.
Having previously held a position as a senior executive in an education charity, and a handful of global leadership positions at large corporates such as Amazon and Marriott, Victoria realised she needed to do something more fulfilling.
She took out her first loan with Start Up Loans in June 2021 for £5,000, alongside £7,000 of her own savings. She then took out a second loan of £6,000.
“As a passionate feminist and proud South African, I wanted to launch something that really made a difference to women. Each purchase made also supports survivors of gender-based violence at the Saartjie Baartman Centre in Cape Town.
The initial loan funds were invaluable in helping me get up and running – I used them to build up my website, purchase initial stock, trial various advertising and marketing options, and a stand for a trade show to showcase the products. The level of support I received when applying for my second loan was fantastic and is something I didn’t feel I’d get from other lenders. I used it pay for additional exhibition display stands, a photography light studio and new stock, which made a huge difference to my sales in the run up to busy retail moments.”
This extension of the programme will enable us to work with those businesses that had perhaps just got going when the pandemic hit, or are ready to consolidate and grow their businesses now that they are back on their feet. We want to ensure that these businesses do not get left behind.