The UK government has provided a quarter of a billion in Start Up Loans to small UK businesses since 2012, it was announced on Wednesday.
The loans, valued up to £25,000 at a fixed 6% interest rate, are awarded by the government backed British Business Bank. They not only help young entrepreneurs to get a financial footing to further their business, but recipients also benefit from free business support.
The loans have benefited young entrepreneurs from all across the country to start a wide variety of small businesses. Over half of the loans, distributed to people between 18 and 24, were offered to those not previously in formal employment or education, and one in five of the loans went to deprived areas of the UK.
In its first evaluation of the program in March this year, the British Business Bank said the loan program has had a positive impact on the UK’s start-rate of beneficiary businesses.
The loans are also said to generate a return on investment to the economy of £3 for every £1.
Business and Energy Secretary Greg Clark spoke about the Start Up Loans program:
“British entrepreneurs and small businesses are the backbone of our economy. This government will build on the success of Start Up Loans to give entrepreneurs the support and opportunities they need to start a business, grow it in Britain and turn it into a global success story.”
Katharina Fleiner 01/09/2016
