The British Business Bank (BBB) has recently completed its 75,000th startup loan (SUL) as part of its programme which has provided £623 million in investment to new businesses since it started in 2012.
The UK Government’s economic development bank has made 19,846 SULs in the North of England alone, providing more than £160 million in funding to Northern startups over the course of the last eight years. The North West received the highest number of loans outside of London – numbering 9,219, worth a total of £74 million since 2012.
North East startups received funding worth £35 million in this time, while those from Yorkshire and the Humber received £54 million worth of loans.
The data provided ends in July 2020 meaning this number could be even higher – with the landmark 75,000th loan being made in August. The recipient of the 75,000th loan was Helen Conway from Blackwood in South Wales.
The startup loan plan provides young businesses with up to £25,000 in debt at an interest rate of 6%, supporting entrepreneurs who often struggle for finance.
The pandemic lockdown period has, in fact, been a healthy one for SULs. There was a spike in loans being issued since the start of the pandemic; with £32 million in funding granted between May and July this year compared to £22.9 million in the same period the previous year.
With the amount capped at £25,000, the average loan amount granted across the country was £8,346.
40% of loan recipients were women, while 20% were BME. What’s more, 33% of all loan recipients were unemployed when they applied for the SUL.
Richard Bearman, Managing Director of SUL, said: “Start Up Loans’ 75,000 draw down represents a major milestone for our operations, meeting a key policy objective from when we launched in 2012. The UK Government backed finance for people looking to start their own businesses has never been more important than it is currently.”