£100 Million Boost for South West Start-Ups: Cornwall’s Entrepreneurs Benefit from Over £16 Million

The South West has reached a major milestone, with businesses across the region securing £100 million in funding through the government-backed Start Up Loans programme. Cornwall and the Isles of Scilly have played a significant part, receiving over £16 million in loans to help smaller businesses thrive.

Supporting South West Entrepreneurs

Since its inception 12 years ago, the Start Up Loans programme has provided more than 10,000 South West businesses with personal loans of up to £25,000, offered at a fixed interest rate of 6%. These funds aim to support entrepreneurs who may struggle to access traditional financing. The programme also includes 12 months of free mentoring to help businesses navigate their first year.

Businesses in Cornwall and the Isles of Scilly accounted for 1,540 loans totalling £16,176,902. Only Devon surpassed this, with 2,278 loans granted, amounting to over £22 million. Across the South West, the programme has backed a variety of ventures, from microbreweries and cafés to clothing brands and music studios.

For more details on the programme, visit the Start Up Loans website.

House of Glass: A Cornish Success Story

One of Cornwall’s recent beneficiaries is House of Glass, a café and community hub for surfers in Newquay. Run by Ellen Caldwell and Kourosh Zahedi, the business embodies the region’s entrepreneurial spirit. The couple received a £15,000 loan through GC Business Finance to fund their café, which serves as a meeting point for surfers while offering top-tier coffee, French pastries, and handmade savoury focaccia bread.

“The financial boost from the Start Up Loans programme enabled us to take a seasonal trade year-round, providing higher-class facilities and services than we would otherwise be able to afford,” Ellen explained. “Without that money, we wouldn’t have been able to make the year and would have had to pare back massively. It was a survival bucket, a steady hand over the summer that will now enable us to grow.”

Beyond Coffee: Community and Collaboration

The café is a hidden gem in Newquay’s Cribbar Yard, tucked away from the main pedestrian area. It’s more than just a place for coffee; it’s a hub for collaboration. Ellen also designs bespoke wetsuits under her brand FIGURE, while Kourosh crafts surfboards through ZEDSLEDS. Together, they’ve partnered on projects such as a summer clothing line with Urban Outfitters and a surfboard collection for Mercedes-Benz G-Wagon X Culted.

Events such as DJ nights and street food pop-ups add to the sense of community the café fosters. Ellen highlighted the ethos of the venture: “It’s about bringing people together over nothing less than good food, surf, and drink.”

A Legacy of Economic Impact

Louise McCoy, Commercial Managing Director of Small Business Lending at the British Business Bank, praised the programme’s success, stating: “We’re thrilled that the Start Up Loans programme has delivered over £100m of funding to 10,000 businesses across the region since its launch. The programme aims to expand access to funding for entrepreneurs looking to start up and grow, and this latest milestone is testament to the ambition of the South West’s entrepreneurs.”

The Start Up Loans programme, part of the British Business Bank, is funded by the Department for Business and Trade (DBT). It has delivered over £1.1 billion in loans nationwide since 2012, with 40% of recipients being women and 20% from ethnic minority groups.

For businesses looking to start or grow, the programme offers a lifeline, combining accessible financing with dedicated support. Entrepreneurs can learn more about planning and growing their business via free resources available on the Start Up Loans website.

Regional Breakdown of Loans

County	Loans Made	Amount Lent (£)
Devon	2,278	£22,927,933
Cornwall & Isles of Scilly	1,540	£16,176,902
Dorset	1,402	£14,290,340
Gloucestershire	1,430	£14,096,988
Somerset	1,492	£13,450,606
Wiltshire	1,073	£11,457,555
Bristol (City of)	1,031	£8,103,698

For more information on the Start Up Loans programme, including success stories and funding options, visit startuploans.co.uk.