Start Up Loans Scheme

The Government backed scheme launched in September 2012 has apparently seen over £72million written off or fall into default according to the British Business Bank.

If correct this represents 31% of the total monies loaned under the programme and is a sum greater than the amounts so far repaid in the last 4 years. Questions are being asked regarding why taxpayers are seemingly funding a scheme where success is measured more by the amount of money which passes out the door and the speed with which this is achieved rather than by the commercial returns coming back in.  A spokesman for BIS says that “over a quarter of a billion pounds has gone out to entrepreneurs through the scheme, creating thousands of jobs and generating a return on investment to UK plc of £3 for every £1 spent”  (Independent i)

That comment from BIS serves only to reinforce the fact that they are fully aware of what is going out whilst not fully understanding perhaps that if companies cannot repay their loans then they are presumably in difficulty and will be reducing payroll rather than extending it further and not providing a return on investment at all !