The Start Up Loans Company has reached a new milestone, delivering £300m in micro business loans to new entrepreneurs since launching five years ago.
The figure represents loans to a total of 46,400 startups and early stage companies since the government-backed programme was founded in 2012 – an average of 11,200 every year.
According to official statistics, businesses funded by the Start Up Loans Company had created over 55,700 jobs in Britain.
The initiative has also succeeded in funding business ideas among young people and those out of work. Since 2012, over 19,800 micro business loans have been issued to those not in education, employment or training (NEET) or declared unemployed at the application process.
Launched as the lending arm of the government-funded British Business Bank (BBB), the Start Up Loans Company provides finance up to £25,000 at a fixed interest rate of six per cent per annum. Recipients are also entitled to free business support from the Start Up Loans Company throughout the early days of trading.
Responding to the record figure, government small business minister, Margot James, said the micro business loans had given a crucial “jump-start” to thousands of new founders.
James added that strong levels of job creation demonstrated the dependence of the wider UK economy on the country’s small companies.
In a statement, Start Up Loans Company CEO Tim Sawyer said the latest milestone was testament to the “drive and ambition” of business founders across Britain.
The lender announced the milestone alongside news of a full merger with the BBB.
“This merger recognises how successful our partnership with the bank has been and helps us improve our support for businesses who may struggle to access other forms of finance,” Sawyer said.
Commenting on the merger, BBB CEO Keith Morgan said the “shared sense of purpose and complementary skills” would enable the two organisations to deliver the government’s commitment to issue 75,000 micro business loans by 2020.
“This is a natural next step, an exciting moment for everyone involved, and means we can deliver a better service for smaller businesses,” Morgan added.
If you’d like to know more about the Start Up Loans Company, Business Advice interviewed owners at three new companies founded through the initiative’s micro business loans
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