David Cameron Has Announced The Approval Of The 20,000th Government Startup Loan

Prime minister David Cameron has announced that the 20,000th government startup loan has been awarded.

Visiting the Seven Bro7hers brewery, which benefitted from the small loan guarantee, Mr Cameron hailed the news as an example of the government's commitment to rebalancing the economy in favour of small businesses.

"As part of our long-term economic plan we are backing business and ensuring our budding entrepreneurs get the finance and support they need to kick-start and grow their businesses," the Conservative prime minister said.

"Business and enterprise mean more jobs for hard working people; more opportunities for people to break out on their own and be their own boss; and more prosperity and economic security for us all."

The 20,000th loan went to Melissa Mailer-Yates, 55, from Stratford-Upon-Avon.

Ms Mailer-Yates intends to use the money to help finance her Shakespuss & Co firm, which is developing animated characters with the aim of making Shakespearean plays more accessible for younger children.

The government is now two-thirds of the way to achieving its goal of supporting 30,000 new businesses with £151 million by 2015.

However, despite the government's claims that it is doing more to help SMEs develop into larger companies, the Labour party argues the coalition should be doing more to provide tax relief to struggling startups.

Countering this, Liberal Democrat and Conservative ministers believe the strong growth the UK is experiencing at the moment is a result of how it has handled the economic crisis, which it blames Labour for creating.

To promote the Startup Loan fund, David Cameron will meet a number of business leaders on a regional tour of the north-west of England.

While on the trip, Mr Cameron will meet a number of people who have been helped by the loan system, which was created earlier this parliament to foster growth among SMEs.

Expert Opinion

We need to give small businesses all the opportunities possible so that they can flourish. Not only is this important for job creation, it also helps rebalance the economy and puts us on a more sustainable footing for the future. <br/> <br/>“This is a pleasing landmark to reach, but we need to do more to support our entrepreneurs, not just at start up stage but also as they develop into larger concerns. <br/> <br/>“Ensuring that businesses access funding to get their idea off the ground is essential, but the government needs to ensure SMEs have the ability to continue funding new growth – whether that be exploring new markets in the UK or taking their idea overseas.” <br/> Steven Beahan - Partner