August 26, 2020
The UK Government-owned British Business Bank has issued its 75,000th loan through its Start Up Loans programme, marking more than £623 million invested in small businesses across the UK since its launch in 2012.
Across England, loans have been made so far to small businesses and entrepreneurs, with the average loan being £8,346 – meaning that thousands of people have benefited from UK Government backed support where they may otherwise have struggled to access it.
The Start Up Loans scheme has benefited every region and country in the UK, and underscores the government’s commitment to level up and improve opportunities across every part of the United Kingdom as we continue our recovery from coronavirus.
The Conservative Government has already provided a huge and unprecedented package of support for businesses through this difficult time, including providing income support for self-employed workers, Bounce Back Loans of up to £50,000 for businesses experiencing financial difficulties, grants of up to £25,000 for the industries and small businesses which have been hardest hit by the coronavirus outbreak, a temporary cut in VAT for the tourism and hospitality sectors from 20% to 5%, and a 12-month business rates holiday for sectors which are struggling with cashflow issues.
Commenting on the success of the Start Up Loans scheme, the Business Secretary Alok Sharma said the following:
“The Start Up Loans programme was set up by the government-owned British Business Bank to give funding and support to entrepreneurs who might otherwise struggle to access it, making a real difference to tens of thousands of entrepreneurs across the country.
“Our plan to build back better will level up every region and sector of the UK economy, backing makers, doers and innovators regardless of background.”
“As well as finance, every loan recipient is offered a support package, including access to a free expert business mentor for 12 months to help them with every aspect of setting up a business.”
In 2019, we stood on a platform of supporting businesses across the United Kingdom. We want Britain to be the best country in the world to start and grow a business. A place where entrepreneurs know they can build on their ideas and find success.
That's why, throughout the difficult past few months, we have been helping businesses meet the costs of keeping their staff on their books throughout the coronavirus outbreak. The Coronavirus Job Retention Scheme allowed firms to furlough workers, with the Government paying up to 80% of employees’ salaries, up to £2,500 a month.
We have also launched the Self-Employed Income Support Scheme, to ensure people who work for themselves are getting the support they need. The Government will pay self-employed people who have been adversely affected by coronavirus a grant worth 80% of their average monthly profits over the last three years, up to £2,500 a month, for three months. A second grant is available covering June to August, available at 70% of average monthly profits.
We have offered a 12-month business rates holiday for sectors which are struggling with cashflow issues. All eligible businesses in the retail, hospitality and leisure sectors, as well as nurseries, estate agents and bingo halls, will pay no businesses rates from 12 months, from 1 April 2020.
And we have cut VAT for the tourism and hospitality sectors, giving a much-needed boost to some of the industries hardest hit by coronavirus.
Commenting, Therese Coffey, Secretary of State for the Department of Work and Pensions, said:
“Corbyn’s Pension Tax will see ten million savers facing a huge bill forcing them to delay their retirement for almost three and a half years.
“This is just one of the ways a Corbyn government would hammer hardworking people on top of his plans to hike up taxes by £2,400 a year, as well as the cost of his plan for unlimited immigration and the chaos of 2020 being dominated by two more referendums – one on Brexit and another on Scottish independence.
“Only Boris Johnson and the Conservative Party can get Brexit done with a deal, get parliament working again and turbocharge our economy to unleash Britain’s potential.”