British Business Bank expands start up loans programme in Northern Ireland

The British Business Bank’s start up loans programme has expanded in Northern Ireland.

It now includes start ups that have been trading for up to three years and second start up loans are now available to eligible businesses that have been trading for up to five years.

The programme previously provided finance to start ups which had been trading for up to two years.

Start up loans’ expansion follows the 2021/22 Spending Review, at which the government made the commitment to provide 33,000 loans to the programme over the next three years. The scheme has already delivered more than 1,000 loans worth more than £12m to new business owners in Northern Ireland since 2012.

Start up loans provides funding at a fixed interest rate of 6%, as well as 12 months’ mentoring to its recipients, further supporting aspiring business owners in every corner of the UK. Start Up Loans’ impact has been particularly noticeable among individuals who might find it difficult to secure loans from traditional lenders.

Will Smith, founder of Ballywilliam Barn from Comber took out two loans totalling £6,000 to launch the business, previously Woodwork by Will, in January 2020 to follow an ambition of making his bespoke creations available for others to buy. The support Will received from the British Business Bank has enabled the company to increase its capacity and take on larger projects earlier than expected. He used the money to invest in essential machinery, including a table saw.

Will said: “When I started my business, I felt nervous and anxious, but I was determined. I was nervous that people wouldn’t like my furniture and anxious about taking the financial leap, but I really believed that my business would work. Having access to the second Start Up Loan helped enormously and I now offer clients far more than I ever anticipated. As well as handmade furniture I now offer bespoke kitchen fittings and I’m looking forward to seeing what next year brings.”

Business secretary Jacob Rees-Mogg, explained: “The people of NI are some of the most entrepreneurial in the UK. This is especially true when it comes to micro-businesses, which make up 89 percent of the business community. By expanding upon the £12m in start up loans Northern Irish businesses have already received, we can harness that pro-business culture and channel it into a bright future filled with jobs, growth, and sustainability.”

Susan Nightingale, devolved nations director, UK Network, added: “We are delighted to be able to extend the reach of the start up loans programme to help support businesses, including those who need extra support during a challenging economic environment. This extension of the programme will enable us to work with those businesses that had perhaps just got going when the pandemic hit or are ready to consolidate and grow their businesses now that they are back on their feet. We want to ensure that these businesses do not get left behind.

“We have always been committed to providing support and funding to smaller businesses across Northern Ireland, with entrepreneurial ambitions across all industry sectors. Having delivered more than £12m in loans to Northern Ireland alone highlights our continued efforts to help people from diverse backgrounds achieve their business goals.”

Start up loans figures measured up to July 31.