Start Up Loans lending tops £40m in record summer

The British Business Bank’s Start Up Loans programme provided more than £40m to UK small business owners between June and August 2026, increasing the value of its summer lending by 14% compared with 2025.

The programme delivered more than 3,000 loans over the three months, nearly 13% more than in the previous summer. Louise McCoy, of Start Up Loans, described the period as a record summer in an article for Elite Business.

What happened

Women accounted for 38% of borrowers during the summer, while 21% of recipients were from ethnic minority backgrounds. A further measure showed that 5% had been unemployed when they applied for their loans.

Those figures describe the people receiving finance, rather than the share of money advanced to each group. McCoy presented the lending results as evidence of the programme’s work to reach entrepreneurs from groups that are typically underrepresented in access to business finance.

The increases in both loan numbers and total value came ahead of a planned autumn expansion in support for early-stage businesses. McCoy said the programme had set more ambitious targets, although she did not give a lending value or loan-volume target for the coming period.

The background

The lending update followed an improvement in the BDO business optimism index in early September, when UK business confidence reached its highest level in almost two years.

McCoy also pointed to quarterly UK economic growth of 0.4%, against expectations of no growth. She cited an increase in Bank of England gross bank lending in June and July alongside the higher number of Start Up Loans drawdowns as grounds for a more positive assessment of demand for finance.

Separately, the programme recently passed £100m in cumulative lending to female founders based in London. That milestone covers a different measure from the summer’s UK-wide lending total.

One business supported by the programme is bubble tea manufacturer Dot Dot Tea. Its founder Yan is a current Start Up Loans ambassador, and the business subsequently secured investment from JamJar Investments and angel investors.

Dot Dot Tea’s products are now stocked on aircraft, in restaurants and in department stores. McCoy used its development to illustrate how an initial start-up loan can precede further investment and wider distribution.

The company’s founders are Asian women operating in manufacturing, which McCoy described as a traditionally male-dominated industry. Around 90% of the manufacturer’s staff are also women, making its workforce another part of the example she gave of support reaching underserved groups.

What people are saying

McCoy argued that access to finance needs to be accompanied by confidence in a viable business idea. Her assessment was that the summer results offered encouragement both for prospective founders and for the UK’s position as a place to establish a business.

She linked support for new businesses to potential benefits beyond individual borrowers, including employment, occupied high street premises and tax receipts for public services. These were the wider benefits she associated with creating conditions in which more people could start companies.

McCoy also acknowledged that launching a business remains difficult and is not suitable for everyone. She framed the programme’s role around people who already have a plan and a viable idea but need funding and practical support to proceed.

What happens next

For autumn 2026, Start Up Loans can support businesses with up to five years of trading history, following a recent extension from the previous three-year limit. The change brings firms further into their early development within the programme’s scope, rather than restricting support to the youngest businesses.

Borrowers can also receive post-loan support, including mentoring. McCoy said this could be particularly useful to first-time business owners who do not have an established network of peers to approach for help.