Start-Up Loan Scheme Will Benefit Greater Lincolnshire, Says LEP

News release

29th May 2012

A new Government scheme to encourage young people to start their own small business has been welcomed by the Greater Lincolnshire Local Enterprise Partnership.

David Dexter, Deputy Chair of the LEP, says the Government’s launch today of an £82m fund to support entrepreneurs will have a positive effect in Greater Lincolnshire.

“This scheme is excellent news as it is targeted at the creation of small and medium-sized business (SMEs).

“These small firms are the lifeblood of the Greater Lincolnshire economy –  82% of our businesses employ fewer than 10 people.”

Under the StartUp Loans scheme launched yesterday (Monday) by Prime Minister David Cameron, young entrepreneurs aged between 18 and 24 will be able to apply for loans of around £2,500 to start their own business.

Mr Cameron said he hoped the initiative could lead to 30,000 more start-ups and give a boost to economic growth.

The launch of the scheme follows a review by former Conservative minister Lord Young of Graffham which found that the UK would have 900,000 more businesses if it had the same entrepreneurial culture as the United States.

David Dexter added: “This new source of seed funding is vital because the message we are hearing from businesses in Greater Lincolnshire is that access to finance continues to be a barrier to growth.

“This message came through loud and clear last year when we consulted with businesses across a range of key sectors and it is an issue which we are constantly lobbying the Government about.

“These new start-up loans are good news for new businesses but we hope the Government  will continue to look at ways to make finance available to existing firms too.

“We also hope to see more progress made in cutting the burden of red tape on small business.”

The StartUp Loans scheme will be chaired by entrepreneur and Dragons' Den participant James Caan and administered by groups that already work with young people.

The Government will set aside £82m over three years to fund the loans, which will be repayable at three per cent above the Retail Price Index.

As well as the loan, which can last up to five years, participants will also receive help in developing a business plan and training.

Ends

Notes to Editors

To find out more about StartUp Loans visit http://www.startupbritain.org/loans

The Greater Lincolnshire Local Enterprise Partnership is a new body led by the private sector which aims to improve conditions for infrastructure and doing business in the Greater Lincolnshire area.

One of the first LEPs to be established in the UK, the Greater Lincolnshire LEP covers a large geographical area with a population of over one million and a diverse range of industries, from ports and logistics to farming, tourism and engineering.

It includes North and North-East Lincolnshire and is controlled by a LEP board made up of leading figures in the public and private sector.

For more information about the Greater Lincolnshire LEP please contact Ruth Carver or Carolyn Tuscher at the LEP Secretariat on 01522 550515, or visit www.greaterlincolnshirelep.co.uk

Jez Ashberry
Shooting Star PR
01522 528540
jez@shootingstar-pr.co.uk
www.shootingstar-pr.co.uk
t: @jezashberry

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Quick facts

The Greater Lincolnshire LEP has welcomed the launch yesterday (Monday) of a new fund to encourage young people to set up in business
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David Cameron yesterday launched StartUp Loans and promised £82m over three years to loan to people aged between 18 and 24
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Quotes

This new source of seed funding is vital because the message we are hearing from businesses in Greater Lincolnshire is that access to finance continues to be a barrier to growth
David Dexter, Deputy Chair of the Greater Lincolnshire LEP