Young entrepreneurs secure over £100 million financing via Start Up Loans scheme

Business owners aged 18-24 have been provided with more than £100 million financing from the Start Up Loans scheme since 2012, with the North-west’s young entrepreneurs receiving the highest volume of loans outside London.

More than 15,000 loans have been provided to applicants under the age of 25 by the British Business Bank scheme since it launched in 2012.

Outside of London, the North West has received the highest volume of loans (1,992), followed by West Midlands (1,591) and the South East (1,291). London has received 3,099 loans in total since 2012. Among those to receive one of these loans, the most popular industries to launch a business in include retail (£8.5m), hospitality (£5.8m) and arts and entertainment (£2.5m).

Richard Bearman, Managing Director, Small Business Lending at British Business Bank, said:

“It’s amazing to see people in their late teens and early twenties with such ‘can-do’ attitudes and motivation to achieve success in working life.

“Our £100 million funding milestone is a significant landmark and testament to the hard work of Start Up Loans.”

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 making 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.

Small Business Minister Kevin Hollinrake said:

“Every large firm started off as a small business and today’s aspiring young entrepreneurs could be the next success story. I urge them to explore how a Start Up Loan could launch their ambitions today.

“Through the British Business Bank, and the Help to Grow campaign, we’ve backed the next generation of business leaders with over £100 million in government backed finance and we’re not stopping there.”