Government-backed scheme has provided 1,826 loans to Scottish startups and early stage businesses since launch in March 2014
The Start Up Loans Company is celebrating two successful years of supporting Scottish start up and early stage businesses, having provided £8.3million in funding to date and contributing to 2,150 new jobs.
The Start Up Loans Company (SULCo) was first formed in June 2012 on behalf of the Department of Business, Innovation and Skills and provides loans of up to £25,000 at 6% fixed per annum, offering dedicated mentoring to each business it supports.
Since 2012, Start Up Loans has delivered more than 36,000 loans to start ups across the UK, providing more than £200m of funding and helping create more than 50,000 jobs to date.
78 per cent of all loans from the Government-backed scheme in Scotland have been given to people formerly unemployed or economically inactive, and 90 per cent of all loans provided to young people (aged 18-24) have been to those formerly not in employment, education or training (NEET).
Contento is one of the many Scottish start ups supported by Start Up Loans. The deli and catering business based in Glasgow was set up by Kevin Finlayson in 2015 with the support of a £19,500 loan. Contento turned over more than £95,000 in its first year of trading and Kevin is expecting this to at least double in 2016. The business has also secured several new corporate catering contracts. Kevin plans to open a second deli in the next year, as well as expanding the existing deli’s offering by installing a seating area for customers who wish to stay and eat inside.
Tim Sawyer, CEO of Start Up Loans Company, said:
“Scotland is home to a wealth of ambitious aspiring business owners but, sadly, many lack the necessary funding and support needed to ever get their start up and early stage propositions up and running. Having witnessed how many businesses Start Up Loans have helped in England, the expansion into Scotland was an obvious progression. We want everyone in Scotland who is thinking of starting up a business to know that help is out there, and we look forward to fulfilling our aim to support even more Scottish businesses by the end of 2016.”
Kevin Finlayson, owner of Contento, said:
“When I had the idea to set up Contento, limited access to finance was a real problem and I started to think it would be impossible to get up and running. Thankfully I heard about Start Up Loans, and they really believed in my business model and provided the funding I needed to get the wheels in motion. The advice and support I received from my mentor was invaluable, and our first year in business has been a true success.”
Scotland Office Minister Andrew Dunlop said:
“The Start Up Loans Company has made a huge contribution to entrepreneurship in Scotland. It is a great example of how the UK Government is helping Scottish entrepreneurs to take control and start their own businesses. I look forward to seeing more and more new businesses getting the essential support they need, helping to create jobs and economic growth in Scotland.”