Appetite for startup loans increases

British Business Bank’s Start Up Loans programme has shown a strong year-on-year increase in the volume and value of early-stage finance being accessed, having provided UK business owners with £14.6 million in finance in July 2026. In the same month in 2025, this number totalled £12.8 million, marking a 14.2% increase in finance to smaller businesses, and nearly double the rate of increase between July 2024 and July 2025 (+7.3%).

British Business Bank’s Start Up Loans programme provides finance and support to startup and early-stage businesses across the UK. It provides personal loans for business purposes of up to £25,000 at a fixed interest rate per annum and offers free dedicated mentoring and support to each business. Eligibility for a first Start Up Loan has been extended to businesses that have been trading for up to 60 months. Since its inception, around 70% of finance deployed has been delivered to businesses outside of London and the South East, the two areas which see the highest levels of funding in the UK.

The increase in finance delivered by Start Up Loans is all the more noteworthy as it comes against a mixed picture for business confidence, with ICAEW and Institute of Directors trackers showing recent dips.

Louise McCoy, Managing Director, Start Up Loans, British Business Bank: “The data we are seeing at Start Up Loans suggests entrepreneurs are if anything more focused than ever on starting or growing their business. This is a strongly positive sign. This July, we’ve seen 148 more loans provided to support businesses starting up or funding early-stage growth compared to July in 2025, with momentum building significantly over the past two years.

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“It’s great to see a diversity of business owners and business types among the Start Up Loans recipients in every part of the UK.”