Back in early September, the BDO business optimism index reported that business confidence in the UK had increased, reaching its highest level in nearly two years. Additionally, this past quarter UK economic growth figures also showed an unexpected 0.4% rise, defying predictions of zero growth. But do these figures translate to increasing demand for business finance and therefore even greater business growth in the future? When aligned with a recent uptick in drawdown numbers at Start Up Loans, alongside a similar increase in Bank of England gross bank lending for June and July, there are indeed reasons for positivity.
Between the start of June 2026 and the end of August, our British Business Bank Start Up Loans programme delivered over £40m of lending to smaller business owners, a 14% increase in value compared to the summer months of 2025.
This £40m total was the result of over 3,000 loans delivered over the course of June, July, and August 2026, an increase of almost 13% on the year before.
38% of loan recipients over the 2026 summer months were female, 21% belonged to an ethnic minority group, whilst 5% were unemployed at the time they applied for their loan.
Three reasons for optimism
It is often said that optimism can make the difference between success and failure and these numbers give us plenty of reason to feel positive moving forward.
Positive about the chances for people with a viable business idea to be given the confidence and financial support to make that aspiration a reality.
Positive about the UK as a place to set up a business.
And positive about creating opportunities for those from typically underrepresented groups when it comes to accessing finance and having the opportunity to set up a business.
Why this matters for the UK economy
When we create the conditions for people to set up a business we all benefit – whether that is from the jobs created, the high street units that are bustling rather than boarded up, or from the taxes raised that help fund public services.
So, looking back on this summer as the nights draw in and the clocks change it is important we sustain this forward momentum.
We have set ambitious new targets to help even more UK early-stage businesses to go further in autumn 2026, taking advantage of our recently introduced ability to facilitate finance to businesses of up to five years trading, up from three years previously.
Evidence of real impact
There is a lot of evidence that the increase in funding being provided is having a real impact. We recently crossed a milestone of providing £100m of Start Up Loans finance to London-based female founders. One of those businesses supported is our current Start Up Loans Ambassador, Yan from bubble tea brewery manufacturer, Dot Dot Tea. This is an ambitious, interesting business that started with Start Up Loans but has gone on to get investment from JamJar Investments and angel investors and is now stocked on aeroplanes, in restaurants, and department stores.
It is also a fantastic microcosm of the smaller businesses that Start Up Loans does a great job of supporting. Dot Dot Tea founders are Asian females working in manufacturing, a traditionally male-dominated industry, and around 90% the manufacturer staff are also female. Dot Dot Tea story highlights how a Start Up Loan can be the starting point for business expansion, creating jobs and opportunities, especially for underserved groups.
This autumn Start Up Loans is well positioned to help early-stage businesses that have been trading for five years or fewer – with finance, yes, but also with post-loan support including mentoring. This is an important part of the Start Up Loans offer that can be especially useful for first time business owners who may not have an established network of peers to call on for help.
With the BDO business optimism index and economic growth showing positive signs, alongside our own record summer of lending there are reasons to be cheerful. Yes, starting a business is challenging and it isn’t for everyone. But for those with a plan and a viable idea, who just need some confidence, some support, and access to finance, Start Up Loans is better positioned than ever before to help, with finance and with post loan support.
Key takeaways
- Over 3,000 loans were delivered between June and August 2026, totaling £40 million in funding
- Female entrepreneurs accounted for 38% of loan recipients, highlighting progress in gender inclusion
- 21% of borrowers were from ethnic minority backgrounds, underscoring support for diverse founders
- Rising business confidence, as reflected in the BDO index, aligns with the program’s impact
- New, more ambitious autumn targets have been set to expand outreach and further aid under‑represented founders
