A British Business Bank operation has delivered more than £11m worth of loans to small businesses in the South West last year.
Start Up Loans, part of the British Business Bank, delivers funding to businesses who may otherwise find it difficult to secure loans from traditional lenders.
Start Up Loans through its partnerships also offers mentoring to recipients in their first year.
Since its inception in 2012, the programme has supported over 9,000 businesses through £90m in loans in the South West.
In the past financial year alone (2023-2024), over £11m has been lent to 874 businesses via the Bank’s appointed Business Support Partners, which is primarily SWIG Finance in the South West.
Spread across the region, the diverse range of businesses includes an animal therapist, mobile cocktail bar, baker, green builder, photographer, sewing café and ceramics studio.
Richard Bearman, manging director of Small Business Lending at the British Business Bank said: “We’re delighted that the Start Up Loans programme continues to have such a hugely positive impact on entrepreneurs across the South West, helping hundreds of small businesses in the past year. Hitting £11m is a huge milestone and highlights the success of our efforts to boost access to finance across the region.”
One of the businesses to benefit is BKW CrossFit, a new community-based gym in east Bristol, set up by a group of four friends.
The group – Adam Facey, his partner Raquel Sanjurjo Doval, and friends Holly Hawkins and Hayden Cotton – came together in 2022 after meeting at the gym and bonding over their mutual love of fitness.
They all believed they could build upon the community aspect of CrossFit and acquire a space that allowed for socialising after training. In 2023, the friends took the plunge and each took out a Start Up Loan, amounting to £60,000 between them, via British Business Bank delivery partner BizBritain.
The gym opened in March 2024 and its key focus is to create a strong sense of community with a family-oriented feel. Thanks to the finance they received, they were able to secure a unit with a mezzanine level which could be used as a place for people to meet fellow gym users. They kitted out the space with a children’s area, TVs, sofas, and free coffee. This means that at BKW CrossFit, parents don’t need to leave their children behind when working out.
The team are continuing to focus on breaking down barriers to fitness by hosting mum and baby classes as well as social events in which children can take part, like Easter
“Securing this finance has meant everything to us,” said Adam. “We wanted a trusted loan provider that looked at the business plan, not just at the potential profit behind it. It’s given us the opportunity to purchase all of the equipment instead of renting it and to be able to secure a big unit in the location we wanted.”
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 make 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.
