More than £320,000 of Government loans have been handed to Bradford entrepreneurs to help them “achieve their dreams”.
A total of 65 people have been given ‘Start Up Loans’ to set up their own businesses, new figures show – receiving an average of £5,000.
Across the district, the scheme has helped 229 people become entrepreneurs, distributing almost £1 million of taxpayers’ cash.
Now David Cameron has hailed the budding business leaders as the “lifeblood of a healthy, expanding economy” – and vowed to help many more people.
The Prime Minister said: “Start Up Loans are helping budding entrepreneurs across our country achieve their dreams.
“People who have got ideas, determination and solid business plans, but through no fault of their own they can’t get the money to make a go of it.
“New businesses are the lifeblood of a healthy, expanding economy, a symbol of aspiration and a source of jobs. That’s why Start-Up Loans matter to me.”
Across England, the scheme has just allocated its 10,000th loan, putting it one-third of the way to Mr Cameron’s target of supporting 30,000 new businesses by 2015.
James Caan, the Dragon’s Den star who heads the scheme – which started 18 months ago – said: “What we have achieved to date is astounding.” As well as the loan, successful applicants receive help in putting together their plan and further mentoring as they start their businesses.
The projects include everything from property firms and a Vietnamese food company, to local magazines and gluten-free pet food.
In September, maximum funding was extended to £150 million and eligibility extended from under-30s to anyone aged 18 and over.
The loans – made over a period of up to five years – charge annual interest of 6.2 per cent, with payments used to fund future loans.
Start Up Loans are separate from the ‘New Enterprise Allowance’ scheme which, as the T&A reported earlier this year, has helped at least 120 entrepreneurs in Bradford. Mr Cameron has pointed to such schemes as a key part of making the UK “the best place in Europe to start, finance and grow a business”.
But some critics have questioned a Government admission that up to 40 per cent of loans are unlikely to ever be repaid.
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