To ask the Secretary of State for Work and Pensions what amount his Department has spent on the Start-up Loans Company to date; and what that funding has been spent on.
I have been asked to reply on behalf of the Department for Business, Innovation and Skills.
The Start-up Loans Company is grant funded with an allocated budget of £117.5 million to the end of 2014-15. To date, the company has drawn down £57.5 million of this funding.
A maximum of 5% of total funding has been allocated to administration costs, with up to 20% intended to support the costs of mentoring, training and support, and loan disbursement and collection by Start-Up Loans' delivery partners (dependent on individually negotiated commercial terms). These allocations are specified under the terms of the grant offer.
Actual spend in the pilot year will be confirmed in the company's annual accounts, which will be published post-audit. However, information provided by the company indicates that savings on the revenue allocation from reduced administration and transaction costs in excess of £1 million were achieved and recycled as additional capital for lending in the pilot year (2012-13).