Start Up Loans helping rural and disadvantaged entrepreneurs access finance, data reveals

The Start Up Loans scheme has supported nearly 70,000 start ups and small businesses outside of London, new figures have revealed.

Launched in 2012, the initiative delivers finance to entrepreneurs who might find it difficult to secure capital through traditional means.

According to the latest statistics, the scheme has now issued more than £600 million of loans to businesses based outside of London – helping to level the playing field between city-based and rural firms.

The data shows that the North West received the highest number of loans outside of London, after some 10,881 businesses were supported with £94 million of finance.

The South East followed with 8,378 loans worth over £81 million, while Yorkshire & Humber received 7,497 loans valued at £68 million.

The average loan amount, meanwhile, came in at £9,115.

Commenting on the figures, Richard Bearman, Managing Director of Start Up Loans, said: “Providing £600 million worth of funding to new businesses outside of London is a huge milestone for the government backed Start Up Loans programme and reflects the broad diversity and ambition of the nation’s small businesses at a grass roots level across the whole country.

“We have always been committed to providing support and funding to smaller businesses that hail from each corner of the country, particularly in areas of deprivation where people may struggle to access funding, and this milestone is tribute to that.”

What is the Start Up Loans scheme?

Administered by the British Business Bank, the Start Up Loans initiative supports entrepreneurs who may find it challenging to access traditional forms of finance.

This includes small business owners from disadvantaged backgrounds and those based in regions outside the capital.

Under the scheme, entrepreneurs can access personal loans for business purposes of up to £25,000 at a six per cent fixed interest rate per annum, as well as free dedicated mentoring and support for 12 months.

The scheme has delivered more than 87,400 loans worth £779 million since launching in 2012.

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Posted in Blog, SMEs.