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Julian Sturdy - Strong Voice for York Outer

Julian Sturdy

Member of Parliament for York Outer

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Over £680,000 of government start-up loans awarded to York Outer small businesses, new figures show

August 26, 2020

New small businesses in York Outer have benefited from £680,573 of affordable finance through the government’s Start-Up Loans scheme, new statistics issued on the occasion of the scheme’s 75,000th loan show.

This is the constituency’s share of the £54 million provided to start-up enterprises across the Yorkshire and Humber region by the government-directed British Business Bank under the programme since 2012.

The Start-Up Loans scheme was intended to assist new businesses with affordable lending and mentoring support who might otherwise struggle to access this, allowing them to flourish and create new employment and wealth. It has had a transformative impact on the lives of thousands by assisting them to become entrepreneurs, often assisting people from groups under-represented in the business community. Nationally, 33% of loan recipients were unemployed at the time of application, and 20% are from ethnic minorities.

Julian Sturdy said: “As someone from a small business background myself, I know the immeasurable value of affordable finance and useful advice when a new enterprise is just starting out, and I am glad that the Start-Up Loans scheme has been so useful to York businesses in taking those vital first steps, from which local jobs and growth come.

There was a significant rise in nationwide take-up of Start-Up Loans when covid hit the economy, and this scheme therefore usefully complemented the very significant economic support provided by central government to tide our city over the economic impact of coronavirus.

Latest figures show some £10.1 million has been paid out to self-employed people in York Outer by the government to replace lost earnings under the Self-Employment Income Support Scheme, with local businesses also benefiting from over £16.5 million of non-repayable government business grants, and drawing on over £35.9 million of ‘bounceback’ loans.

This support has been essential, and to rebuild our local economy we have to ensure that people from the widest possible range of backgrounds are empowered to set up new businesses, in the manner envisaged by the Start-Up Loans programme. I will continue to press for our city to receive all the support it needs to return to its normal state of prosperity and high employment.”