Start Up Loans Delivers over £30m to Small Businesses in the North East

Entrepreneurship in the North East of England is on the rise, according to new figures published today from Start Up Loans, part of the British Business Bank.

They reveal that the government-backed programme has lent over £30.5m to small businesses in the North East since it was launched in 2012. In the last year alone, entrepreneurs in the region were granted loans totalling more than £4.8m (an increase of 18.6% since the end of October 2018).

To date, the programme has issued 3,882 loans to aspiring business owners in the North East, with the average loan amounting to £7,867.

Among them is Gary Ewing, from Bishop Auckland, County Durham, who took out a £25,000 Start Up Loan to launch Inspiral Cycles, a bicycle shop and online retailer that provides new bikes, parts and accessories plus a full workshop for the local community and beyond.

Gary had always had a passion for bikes, so when the local cycle store in Bishop Auckland closed, he and his wife Fiona spotted an opportunity and they decided to take the leap.

In addition to their own savings, Gary used the loan to purchase stock and equipment to kick start the business. The shop is now doing so well that Gary now employs four full-time staff and Inspiral Cycles is building an extension to double the size of the current space, in order to cater for the needs of their growing client base.

The award-winning Inspiral Cycles has built a five-star reputation with dedicated riders, families and anyone seeking cycling advice. Located on the edge of the Durham Dales, the area has some of the best cycling routes in the UK right on its doorstep along with a high street which required regeneration.

The Start Up Loans programme provides fixed-interest loans of up to £25,000 to aspiring business owners from across the UK, many of whom might be struggling to access other forms of finance. Since 2012, it has lent over £542.9 million through 67,862 loans.

In addition to finance, Start Up Loan applicants receive support from an experienced business advisor to help them prepare a business plan and cash flow report. Successful applicants are also offered 12-months of free mentoring to guide them through the early stages of their business journey.