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Demand for start up finance suggests a continued entrepreneurial drive

Press release 20 January 2026

Start Up Loans sees 9% rise in loans to start up and early-stage businesses in 2025

The British Business Bank’s Start Up Loans programme saw a 9% rise in loan volumes in 2025 compared to the previous calendar year, suggesting a continued entrepreneurial drive in the UK. This is the same rate of growth as 2024 had versus 2023. December was a particularly strong month, with the volume of loans up 12% in December 2025 compared to December 2024. 

39% of the Start Up Loans in 2025 went to female business founders, while 21% went to ethnic minority groups and 8% went to young Gen Z entrepreneurs aged between 18 and 24. All three groups traditionally struggle to access start up business financing.

The 2025 calendar year also saw demand for Start Up Loans remained broadly consistent in each quarter.

Each quarter was as follows:

  • January-March

    2,805 loans worth £35.92m

  • April-June:

    2,861 loans worth £36.93m

  • July-September:

    2,936 loans worth £36.18m

  • October-December:

    2,738 loans worth £34.08m

The demand for Start Up Loans runs counter to some other findings around business confidence. The British Chambers of Commerce found in their latest survey that confidence among businesses has fallen, with only 46% of responding firms expecting an increase in turnover (compared with 48% in Q3), meaning it is at its lowest level in three years. Furthermore, the Lloyds November Business Barometer found that business confidence fell in November by eight points to 42%.

Louise McCoy, Managing Director, Start Up Loans Products, British Business Bank said:

Despite a mixed picture when it comes to business confidence data, in our Start Up Loans drawdowns data we still see a picture of year-on-year demand holding up.

December and January is a period when many people have the time and motivation to explore setting up their own business and change direction. We have already seen December 2025 delivered a much higher volume of loans than December 2024.

With demand for small business finance from Start Up Loans ticking up, we look forward to supporting more entrepreneurs throughout 2026.

January is traditionally a time when small businesses look to start up or look for external finance. Start Up Loans has found that the period between Christmas and New Year was a time many aspiring entrepreneurs used to find out more about setting up a business.

For business guidance from Start Up Loans please visit, the business guidance section of our website or if you want to go the self-employed route, we have a Fresh Start Guide.

The Start-Up Loans Company is a wholly-owned subsidiary of British Business Bank. It provides personal loans for business purposes of up to £25,000 per partner or owner in a business and to a maximum of £100,000 for a business. 

Further Information

If you are a journalist and have a media enquiry, please contact mediaenquiries@british-business-bank.co.uk.

Notes to editors

About Start Up Loans

The Start Up Loans programme 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.

The primary aim of the Start Up Loans programme is to ensure that viable start-ups and early-stage businesses have access to the finance and support they need in order to thrive. A network of Business Support Partner organisations supports applicants in all regions and industries throughout the UK. The Start Up Loans programme is not designed to generate a commercial profit. Capital payments together with the interest are recycled to help meet increasing demands for finance.

Free guides on a range of subjects related to starting a business are available on the Start Up Loans website. You can find recent media press releases here.

The funding for the Start Up Loans programme is provided by the Department for Business and Trade (DBT). The Start Up Loans programme is operated by The Start-Up Loans Company, a company limited by guarantee, registered in England and Wales, registration number 08117656, registered office at Steel City House, West Street, Sheffield, S1 2GQ.  The Start-Up Loans Company is a wholly owned subsidiary of British Business Bank plc which is a development bank wholly owned by HM Government. British Business Bank plc and its subsidiaries are not banking institutions and do not operate as such. With the exception of BBB Investment Services Limited they are not authorised or regulated by the Prudential Regulation Authority or the Financial Conduct Authority. BBB Investment Services Limited is authorised and regulated by the Financial Conduct Authority. A complete legal structure chart for the group can be found at british-business-bank.co.uk.

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