A grand total of £100m in Start Up Loans has been distributed to the “next generation” of business leaders, the latest breakthrough shows, despite an ongoing wave of SME funding challenges.
Since the Start Up Loan Scheme, funded through British Business Bank, was introduced in 2012, some 15,000 loans have been issued to founders aged 18 to 24, bringing the total to £100m.
The news comes at what’s seen as a turbulent time for Britain’s SMEs since traditional banks began tightening their lending criteria.
However, the pull-back from big banks has led SMEs to seek alternatives, with a recent survey by fintech firm Iwoca showing 71 per cent of brokers have begun bringing their clients applications to alternative lenders instead.
Receiving a Start Up Loan of £14,500 to launch his business in 2023, the 20 year-old founder of Techie Services, Cory Hibbin, said he urges others alike to consider the finance options that are available if “they need a hand getting off the ground”.
“While it might seem a big leap of faith to some people, you can’t let the fear of failure stop you from trying in the first place,” he said.
Richard Bearman, managing director of Small Business Lending at British Business Bank said: “Our £100m funding milestone is a significant landmark and testament to the hard work of Start Up Loans, ensuring anyone with a good business idea like Cory’s, no matter their age, has the access to the funding needed to bring it to life.”
Small Business Minister Kevin Hollinrake said this news does not mark the end of the efforts being made to ensure businesses can get off the ground.
He added: “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.”