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North East milestone

Start Up Loans celebrates £350 million of loans to businesses in Eastern England

  • Since launching in 2012, Start Up Loans has delivered more than 36,700 loans worth over £352 million, to businesses in the East Midlands, East of England, North East, South East and Yorkshire & The Humber, with the average loan being £9,522
  • Counties across the North East receiving the most funding since 2012 include Tyne and Wear and Durham
  • 12,381 loans drawn down by recipients in Eastern England since 1 April 2020 totalling £154.4 million
  • One third of the total value of loans in the North East delivered since the pandemic began

Start Up Loans, part of the British Business Bank, announces that the programme has delivered more than 36,700 loans worth more than £352 million to businesses in Eastern England. The figures point to the spirit of entrepreneurship across the Eastern counties of the country.

The North East has received over 5,400 loans worth over £49 million since 2012. Of these loans, 1,331 amounting to more than £16 million were drawn down in the region since the pandemic began; this equates to 33% of the total value of loans delivered over the lifetime of the programme.

Impressive figures for entrepreneurship during the pandemic show how people have been helped by Start Up Loans to launch their own businesses when conditions in the job market were difficult.

UK RegionLoans MadeAmount Lent (£)Average Loan Amount (£)
East Midlands5,59151,242,0299,183
East of England7,07167,735,7629,576
North East5,40149,285,31099,125
South East9,926100,827,37310,117
Yorkshire & The Humber8,71583,724,6889,607

Listed in the below chart are the counties throughout the East to receive the most loans since 2012. Top counties across the North East include Tyne and Wear, which received more than £21 million in funding, and Durham which received over £16 million in funding.

East of England Loan Values 2012-2022

NB: Full data table available in Notes to Editors

Of the total 36,704 loans in Eastern regions, 40% have been to women and 14% to people from Black, Asian and Other Ethnic Minority backgrounds (not including White Minorities). Young people between 18-24 years old have received 14% of the loans in the East since 2012, and 36% of the total loans made to people in the same age bracket nationally since the programme began in 2012.

Small Business Minister Kevin Hollinrake said:

“If we are to unlock economic growth, we need to remove the barriers faced by the UK’s most innovative entrepreneurs when it comes to accessing funding and growing their business. Backed by more than 5,401 loans worth more than £49.3 million our most dynamic small businesses across the North East have been able to tap into government support to flourish and fast-track their business ideas and innovations to market.”

Sophie Dale-Black, UK Network Director – Midlands and North of England said:

“It’s a testament to the entrepreneurial spirit of the North East that we’re celebrating such a significant milestone, over £350 million pounds, invested across the Eastern regions since 2012. I am particularly proud of the fact that we have been able to support such a huge volume of young aspiring business people and their start up ventures in the East, which represents 30% of the total across the entire of the UK.”

Emma Hamlett, founder of  Collected, Durham, North East said:

“It is wonderful to be part of an ever growing and strengthening business community in the North East. As one of the Ambassadors for Start Up Loans, I feel grateful and humbled to be in a position to give encouragement, inspiration, and support to other aspiring business owners.

Having both a strong network locally and easy access to information and advice are essential to taking that first, scary step into setting up. Numbers show that more and more entrepreneurs are making that brave move, which speaks to the warmth and strength of the business community and networks we have in the region. I would strongly encourage anyone thinking about starting their own venture to reach out for the advice and support they need to get the confidence to do it in 2023.”

UK RegionCountyLoans MadeAmount Lent (£)Average Loan Amount (£)
Yorkshire and The HumberWest Yorkshire3,34132,800,3109,818
North EastTyne and Wear2,33221,466,2769,205
Yorkshire and The HumberSouth Yorkshire2,12321,005,7769,894
South EastKent1,92417,110,4028,893
East MidlandsNorthamptonshire8348,627,39910,345
East of EnglandEssex1,89917,885,5569,418
South EastHampshire1,86319,765,71710,610
North EastDurham1,85316,674,8308,999
Yorkshire and The HumberNorth Yorkshire1,69916,392,8769,649
East of EnglandHertfordshire1,54415,289,6349,903
East MidlandsNottinghamshire1,40513,042,8229,283
South EastEast Sussex3,34111,406,7708,443
East MidlandsDerbyshire1,34711,169,6048,292
South EastSurrey1,12112,327,43810,997
Yorkshire and The HumberEast Riding of Yorkshire (Former County)1,1089,446,0258,525
East of EnglandNorfolk1,09010,143,7739,306
East MidlandsLeicestershire1,0449,974,6369,554
South EastWest Sussex9709,570,7169,867
South EastBuckinghamshire94711,393,73112,031
East MidlandsLincolnshire9198,086,5408,799
South EastBerkshire (Former County)90110,431,91711,578
East of EnglandBedfordshire86288,155,7609,461
East MidlandsNorthamptonshire8348,627,39910,345
East of EnglandSuffolk7907,382,5159,345
North EastNorth Yorkshire6755,761,5888,5365
East MidlandsDerbyshire1,34711,169,6048,292
South EastOxfordshire6037,156,753411,869
North EastNorthumberland5415,382,6169,949
Yorkshire and The HumberLincolnshire4444,079,7029,189
South EastIsle of Wight (UA)2461,663,9306,764
East MidlandsRutland (UA)42442,02910,525

About Start Up Loans

The Start Up Loans programme provides personal loans for business purposes of up to £25,000 at a 6% fixed interest rate per annum and offers free dedicated mentoring and support to each business.

The primary aim of the Start Up Loans programme is to ensure that viable start-ups and early-stage businesses have access to the finance and support they need in order to thrive. A network of Delivery Partner organisations supports applicants in all regions and industries throughout the UK. The Start Up Loans programme is not designed to generate a commercial profit. Capital payments together with the interest are recycled to help meet our customers’ increasing demands for finance.

Free guides on a range of subjects related to starting a business and recent media press releases are available on the Start Up Loans website.

The funding for the Start Up Loans programme is provided by the Department for Business, Energy and Industrial Strategy (BEIS). A development bank wholly government-owned by BEIS, the British Business Bank plc is not authorised or regulated by the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA). The British Business Bank and its subsidiary entities are not banking institutions and do not operate as such.

The British Business Bank makes finance markets for smaller businesses work better, helping the sector to prosper, to grow and to build economic activity.

Key Statistics

  • Since its inception in 2012, the Start Up Loans scheme has delivered almost 99,800 loans, providing more than £934 million of funding.
  • In the financial year 2021/22, the scheme provided 12,433 loans with a total value of approximately £152.4 million.
  • The economic benefits of the Start Up Loans programme are almost six (5.7) times its economic costs.
  • At Spending Review 2021, the Chancellor announced resources to provide 33,000 Start Up Loans over next three years.

Aside from the return-on-investment numbers these statistics are gross estimates and based on Start Up Loans CRM along with externally commissioned research undertaken by SQW Ltd, with support from BMG Research. Since 2012, 5% of loans went to people formerly unemployed or economically inactive. Some 40% of loan recipients were women and 21% were from Black, Asian and Other Ethnic Minority backgrounds (not including White Minorities).