From kids’ soft play centres to luxury golfing escapes and mobile gaming firms to artisan pie shops, the British Business Bank has been playing a central role in helping turn Northern Ireland’s entrepreneurial spirit into reality.
The Bank’s Start Up Loans programme has reached a major milestone of deploying more than £20 million to more than 2,000 local business owners*, helping them launch and grow their companies.
The most popular local authority for Start Up Loans is Mid-Ulster with 350 loans, followed by Belfast with 338, then Fermanagh & Omagh with 242. In each of Newry Mourne & Down and Armagh City, Banbridge & Craigavon, 234 loans were issued.
In Northern Ireland, a high percentage of the finance went to underrepresented groups and those that would otherwise struggle to find finance to start a business. 12% of borrowers were under 25, and within that group 32% were not in education, employment or training. 20% of borrowers were unemployed.
Secretary of State for Northern Ireland, Hilary Benn, said: “I am delighted that 2,000 local businesses across Northern Ireland have now benefited from a total of £20 million funding through the British Business Bank’s Start Up Loans scheme.
“The scheme sits alongside the British Business Bank’s £70 million Investment Fund for Northern Ireland, which has supported economic growth by backing innovation and creating opportunities for new businesses across Northern Ireland.
“The UK Government is committed to working with the NI Executive so that these businesses have the help they need to develop even further.”
The Start Up Loans programme, while operating with a commercial focus, exists to help open up the finance market to underrepresented groups, who might otherwise struggle to access finance, so they can start viable businesses.
A business that has benefitted
Norman Allen, the owner of Dirty Harry’s Specialist Cleaning Services NI said the Start Up Loan he took was the catalyst for kick-starting his new niche business – crime scene cleaning.
He said: “We took two loans, with the first one helping me put a van on the road while the second one was used for cashflow and the day-to-day running of the business.
“The mentoring element has also been very beneficial. There are a number of areas you can receive mentoring in such as marketing, but as someone new to running a business my mentoring has been centred on building up my skills as a business owner.
“I’m really glad I took the plunge. Being your own boss is extremely satisfying and the control I now have over my time is really pleasing. There’s lots of hard work and I’m responsible for every element of the business, but I wouldn’t swap it.”
Susan Nightingale, British Business Bank Director Devolved Nations said: “Start Up Loans has the power to help people fulfil lifetime ambitions. Northern Ireland has great entrepreneurial spirit with many people harbouring aspirations of being their own boss.
“The Start Up Loans programme provides the finance and support to help people take that first step in starting and growing their own business. It is very encouraging to see this £20 million milestone being surpassed and it’s pleasing to see loans being issued right across Northern Ireland. If you are thinking about starting your own business, the British Business Bank is committed to helping you access the right finance to start up and scale up.”
Start Up Loans are government-backed personal loans available to individuals looking to start or grow a business in the UK.
They were created to support would-be business owners who have struggled to secure finance from traditional lenders. They differ from small-business bank loans in that they are personal loans for business purposes.
All owners or partners in a business can individually apply for up to £25,000 each, with a maximum of £100,000 available per business. Loans can be paid back between one and five years at 6% interest.
In addition to finance, successful applicants are offered 12 months of free mentoring and access to business resources to help them succeed. The loan is unsecured, so there’s no need to put forward any assets or guarantors to support an application.
In Northern Ireland, Start Up Loans works with its Business Support Partner, Enterprise Northern Ireland to reach businesses in need of start up finance and support.
Commenting on the milestone, Michael McQuillan, CEO of Enterprise Northern Ireland, said: “The success of the Start Up Loans programme in Northern Ireland is a testament to the resilience, creativity, and determination of our local entrepreneurs. At Enterprise NI, we’re proud to play a role in delivering this vital support, helping thousands of individuals turn bold ideas into thriving businesses. Surpassing the £20 million milestone is not just a financial achievement – it’s a clear signal that the entrepreneurial spark is alive and well in every corner of Northern Ireland.”
To find out more about Start Up Loans visit www.startuploans.co.uk
*The Start Up Loans programme has provided 2,034 first loans issued in Northern Ireland. The remainder of the loans will be second loans, so individuals coming back for more finance.
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 Business Support 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 increasing demands for finance.
Free guides on a range of subjects related to starting a business are available on the Start Up Loans website: https://www.startuploans.co.uk/free-start-up-guides/. You can find recent media press releases here: https://www.startuploans.co.uk/media-centre/.
The funding for the Start Up Loans programme is provided by the Department for Business and Trade (DBT). The Start Up Loans programme is operated by The Start-Up Loans Company, a company limited by guarantee, registered in England and Wales, registration number 08117656, registered office at Steel City House, West Street, Sheffield, S1 2GQ. The Start-Up Loans Company is a wholly owned subsidiary of British Business Bank plc which is a development bank wholly owned by HM Government. British Business Bank plc and its subsidiaries are not banking institutions and do not operate as such. With the exception of BBB Investment Services Limited they are not authorised or regulated by the Prudential Regulation Authority or the Financial Conduct Authority. BBB Investment Services Limited is authorised and regulated by the Financial Conduct Authority. A complete legal structure chart for the group can be found at www.british-business-bank.co.uk.
