£140m start up loans to entrepreneurs over 50
Start Up Loans, part of the British Business Bank, today announces that it has delivered more than £140m worth of loans to entrepreneurs aged 50+ since its inception in 2012. The programme has supported 13,422 such loans, at an average of £10,427.
Almost half the funding (£64m) has been delivered since the first Covid-19 lockdown. A total of 4,664 loans have been issued since April 2020 equating to £63,928,454 in value. In this period, the average loan value per business is £13,707 – an increase of more than £2,600 compared to the four-year period before Covid-19.
Start Up Loans has delivered more than £13m worth of loans to the over 50s in the financial year running 1 April 2023 – 31 March 2024. This represents a significant contribution to the national efforts to encourage people aged 50+ back into work through a variety of initiatives designed to help stimulate economic growth.
Much of the financing to help start-up businesses went to businesses outside of London, with 85% of the value of the loans deployed outside the capital. Nearly three quarters (72%) went to businesses outside of London and the South East.
The North West was the region to receive the most finance outside of London and the South East, accounting for £16m of funding.
| Loans to over 50-year-olds | ||
| UK Region | Loans Made | Value (£) |
| East Midlands | 699 | 7,887,777 |
| East of England | 1,082 | 11,229,793 |
| London | 2,320 | 21,466,941 |
| North East | 699 | 7,698,151 |
| North West | 1,549 | 16,198,392 |
| Northern Ireland | 168 | 1,607,603 |
| Scotland | 882 | 8,520,102 |
| South East | 1,617 | 17,760,821 |
| South West | 1,474 | 14,781,879 |
| Wales | 615 | 6,983,254 |
| West Midlands | 993 | 11,232,294 |
| Yorkshire and The Humber | 1,286 | 14,106,661 |
| Region not obtained | 58 | 683,900 |
| Grand Total | 13,442 | 140,157,566 |
Eduardo Barreto is one of the business owners over 50 who sought finance to develop his business. He received a £10,000 Start Up Loan in October 2023, using it to help produce a run of shows at The Arcola Theatre for his Bermondsey-based production company, Boy Next Door.
Eduardo Barreto, founder of Boy Next Door Productions commented: “I founded the company four years ago, but it had a slow start due to a health incident. Now that I’m well again, the funding has enabled me to get back to doing what I love most – producing successful shows. It wasn’t only the loan that was important to me, however – Start Up Loans introduced me to Giuseppe, my business mentor and my rock. I wouldn’t have succeeded in my application without him, so I am eternally grateful.
“To anyone else of a similar age thinking about starting their own business, my advice would be to find something you are passionate about and go for it. Keep your left foot in dream world and your right foot in the real world and you’ll find the balance needed to succeed.”
Richard Bearman, managing director of Small Business Lending at Start Up Loans, said: “As Eduardo demonstrates, you can further your business ambitions at any age. It’s why we encourage anyone with a good business idea to get in touch and learn more about how the Start Up Loans programme might be able to help turn it into reality. It is interesting to note the high proportion of the funding during and after the pandemic, suggesting that many people aged 50+ re-evaluated and took action to pursue their business ambitions.”
The Start Up Loans programme helps people start or grow their business and is part of the government-owned British Business Bank’s remit to making finance markets work better for smaller businesses. They can borrow up to £25,000 at a fixed interest rate of 6% per annum and repay the loan over one to five years. The programme also provides 12 months of free business mentoring.