The Start Up Loans Company has announced its lent £400 million to the UK start-ups since it launched five years ago.
Launched in 2012, The Start Up Loans Company provides loans of up to £25,000 to UK businesses at a fixed rate of 6% per year, alongside dedicated mentoring and support.
Andrew Griffiths, UK small business minister, said: “This government is fully behind the entrepreneurs delivering jobs, growth and greater choice for consumers and we are proud that the government-backed Start Up Loans Company has invested £400m in them.
“Small businesses are the backbone of our economy – 99% of firms are small and over 1,000 new businesses start every day. Through our Industrial Strategy we are building an environment which will ensure they continue to thrive.”
Born and Bread, a Northamptonshire bakery, was the recipient of the government-backed programme’s 54,000th loan – taking the scheme past the £400 million funding mark. Born and Bread will use the finance to buy new ovens, coffee machines and to cover initial rent costs ahead of launch in June.
To date, The Start Up Loans Company has supported an average of 9,000 early-stage businesses every year and helped more than 24,000 individuals under 30 to start up a company with £160 million in funding.
It estimates that this has helped create 60,000 jobs, with one in five loans going to residents of the UK’s most deprived communities. Beneficiaries of its loans report an estimated average turnover of £44,000 in their first year.
Libby Keech, owner of Born and Bread, added: “We have always been passionate about baking, and it has long been our ambition to launch our own business.
“Starting a bakery isn’t a cheap process but with the support of The Start Up Loans Company, we were able to purchase equipment and cover our first month’s rent. Now we’re in the process of putting the final measures in place in time for our launch in the summer.”