Government-backed scheme has provided 36,000 loans to startups and early stage businesses since 2012
The Start Up Loans Company (SULCo) has passed a significant milestone by delivering its 36,000th loan to a British start up, bringing the total it has lent so far to more than £200million.
Formed on behalf of the Department of Business, Innovation and Skills in 2012, the scheme provides loans of up to £25,000 at 6% APR, as well as offering dedicated mentoring to each business it supports.
Since launch, the Government-backed scheme has contributed to the creation of more than 50,000 jobs, with over 16,000 of those people being formerly unemployed or economically inactive.
Minister for Small Business Anna Soubry said:
“Start Up Loans have given people from all walks of life the opportunity to swap the nine-to-five for a new career as their own boss. It’s great to see that over £200 million has gone to budding entrepreneurs and we want to take that even further. That’s why the government pledged to treble the Start Up Loans programme, so that a total of 75,000 loans will help create jobs, drive the economy and turn people’s dreams into reality.”
A fifth of all loans have been provided to young people (aged 18-24), with 47 per cent of these loan recipients not formally in employment, education or training (NEET).
A cold-brew coffee liqueur business, which launched in late February 2016 with the support of a £7,400 loan, took Start Up Loans total lending figure to £200million.
Cold & Blac, a venture started by 34 year old Tem Mellese, is London’s first cold-brew coffee liqueur made using Fairtrade ingredients and sustainable productions methods. The loan contributed to the initial set-up costs of the business, including equipment, stock, a launch event and promotional video. Its liqueur is sourced in Hackney, and its products are now sold in retail and wholesale channels across the UK.
Tem Mellese, founder of Cold & Blac, said:
“Access to finance is one of the main barriers in starting up your own business, which is why Start Up Loans was essential in enabling us to get Cold & Blac off-the-ground giving us the capital to support both initial production and marketing costs. The scheme also has the added benefit of providing each business with a mentor, which meant I had support and someone on hand to help me keep my feet on the ground!”
Tim Sawyer, CEO of Start Up Loans Company, said:
“SMEs are often referred to as the lifeblood of the economy, and start-up businesses play a pivotal role to this. That’s why it’s great to see such a demand for finance from Britain’s would-be business owners. Reaching £200million is an important landmark for Start Up Loans Company. Over the last four years our loans have helped create more than 50,000 jobs and for every pound invested we have returned £3 to the economy overall. 2016 looks set to be another busy year for microbusinesses and we are proud to be able support of this growth.”