To ask the Secretary of State for Work and Pensions if he will estimate the cost to the Exchequer of doubling the loan book of the Start up Loans Company.
I have been asked to reply on behalf of the Department for Business, Innovation and Skills.
The Start-Up Loans programme is fully funded by Government, therefore doubling the size of the programme would double the expenditure. However, we expect repayments and interest to be generated and have set out in the grant letter to the Start-up Loans company that these monies should be recycled for the benefit of the programme reducing the burden on the Exchequer over time. On current projections every £1 million spent on loans will generate £2.2 million of additional lending over a 10-year period.