SWIG Finance lends £10m to South West start-ups and helps Exeter shop owners open their second store

Regional finance company SWIG Finance has passed the £10 million milestone for loans given to new businesses around the South West under the government’s Start Up Loans scheme.

The organisation has supported 1,245 entrepreneurs throughout the region since the national scheme started in September 2012.

The total includes 149 loans to Devon start-ups, worth £1.12 million.

Among them are business partners Kalkidan Legesse and Vidmantas Markevius, who took a £10,000 loan to help them start up their Scarves For Sustainability business, which has a store in Fore Street in Exeter.

The money helped the pair, who were both graduates from Exeter University and new to business at the time, to invest in stock and capacity.

Since the loan, in 2015, the business has doubled in size each year and the pair have just this week opened a second store called Sancho’s Dress, selling clothing, accessories and gifts from organic and fair trade producers.

Ms Legesse said: “Being fresh out of university with no savings to fall back on, the loan gave us a really useful boost because it meant we could invest in our growth.

“The business has grown steadily and we’re both really proud to have opened our second shop. We’re still really glad for the initial loan and are grateful both to SWIG Finance and the Start-Up Loans programme for giving us the helping hand towards our success.”

Brian Steer, Fund Manager for SWIG Finance in Exeter, said: “As one of the first Delivery Partners to join Start Up Loans five years ago, it is hugely rewarding, having reached this landmark, to reflect on the incredible amount of new entrepreneurship that the scheme has stimulated here in the South West, and the legacy that has already been created.

“Start Up Loans is a key part of the government’s strategy to encourage entrepreneurship in the UK, increase the rate of business creation and improve survival prospects. It provides the right support at the right time and is a fantastic scheme to be part of.”

SWIG Finance is part of a network of similar organisations delivering Start Up Loans nationally, and in the South West, SWIG also provides investment to established businesses looking to finance their next stage of growth.

Start Up Loans provides government- backed loans and free business support for new entrepreneurs and businesses trading for less than two years. It is managed nationally by the Start Up Loans Company, a subsidiary of the British Business Bank.

Joanna Hill, Interim CEO at The Start Up Loans Company, said: “The South West is brimming with small business potential, and it’s fantastic that SWIG Finance has provided £10million in funding to support the region’s start-up community.

“We’re proud to be working alongside them to ensure those keen to make their business idea a success have access to low-interest finance and mentoring support.”