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.
A total of 39% of the Start Up Loans in 2025 went to female business founders, while 21% went to ethnic minority groups and 8% 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 remain broadly consistent in each quarter.
Each quarter was as follows:
January-March:Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 2,805 loans worth ÂŁ35.92m
April-June:Â Â Â Â Â Â Â Â Â Â Â Â Â Â 2,861 loans worth ÂŁ36.93m
July-September: Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 2,936 loans worth ÂŁ36.18m
October-December:Â Â Â Â Â Â Â Â Â Â Â 2,738 loans worth ÂŁ34.08m
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 are periods 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: https://www.startuploans.co.uk/support-and-guidance/business-guidance, 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 ÂŁ25,000 per partner or owner in a business, and to a maximum of ÂŁ100,000 for a business.
