
The government-backed Start Up Loans scheme, part of the British Business Bank, has delivered more than £1 billion worth of loans to small businesses nationwide since launching in 2012.
In the North-west, businesses in the region have secured almost £122 million in 13,020 loans, with an average loan amount of £9,341. Businesses in Cheshire East have, since 2012, received a total of £6.7 million across 617 loans, the third highest total of any local authority area in the North-west region, behind Manchester and Liverpool.
Nationally over 105,000 businesses have accessed finance from the scheme, which particular enables entrepreneurs from under-represented backgrounds to access finance to start businesses who are often excluded from accessing finance from mainstream sources.
Of the £1 billion loans, nearly 40% have been lent to female business owners, with a total value of £371 million, and 20% have been lent to people from Black, Asian and Other Ethnic Minority backgrounds (not including White Minorities), with a value of £201 million.
Just 4% of the UK’s small businesses in 2021 were majority-led by people from an ethnic minority group and only 20% of new businesses had female founders according to The Rose Review.
Wanchong Chen, co-founder of Robin Valley in Liverpool and recent recipient of a Start Up Loan (pictured below with business partner Liang Zhang), said:
“Our journey has taken us from a modest Etsy shop to a thriving online business and respected wholesaler. The StartUp Loan we secured in June 2023, was crucial to overcoming challenges associated with running a business during a pandemic and ultimately, enabled us to expand our production capabilities, which has made a big difference to where we are today.”
Dr Sophie Dale-Black, UK Network Director for the North of England, British Business Bank said:
“Robin Valley’s vision and unique product offering will ensure that the business continues to prosper with the right support. The Start Up Loan came at the right time for this business, propelling it into national growth, and we’re pleased to have supported this crucial stage of its development. The British Business Bank is committed to investing in local businesses that support their local economies and help power future economic growth across the region.”
Small Business Minister, Kevin Hollinrake, said:
“Across the UK, thousands of small businesses have now been supported by over a billion pounds in Start Up Loans.
“This crucial support is enabling enterprising companies like Robin Valley start and scale up their ventures and I urge even more to follow in their footsteps.”