The British Business Bank has revealed that it intends to provide more than £113m of funding to start-up companies this year through its Start Up Loans programme.
Responding to a freedom of information request filed by Specialist Banking, the development bank disclosed that it provided almost £89m of finance via the scheme in 2018.
It intends to raise revenues of almost £40m this year, with over £11m of that being interest.
The programme is funded by the Department for Business, Energy and Industrial Strategy and is delivered by the Start Up Loans Company, a subsidiary of the British Business Bank.
Over 55,000 business ideas have been supported so far through the scheme, with more than £400m worth of loans provided.
The Start Up Loans Company was established in September 2012 and aims to help new and early-stage UK businesses access affordable finance and mentoring support.
The British Business Bank charges a fixed interest rate of 6% pa through the scheme.
Interest generated via the programme is recycled back into making future loans.
Start Up Loans generated more than £29m of revenue in 2018, with over £10m of that being interest.
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