Hackney tops London’s entrepreneurial boroughs for startup loans
Startup founders in Hackney racked up the highest volume of loans in London as fleets of British entrepreneurs launched their business in the capital.
Some 1,309 loans were taken out by founders in Hackney through the Start Up Loans initiative since its launch in 2012 topping £11.4m in value.
The borough has benefitted from being located near entrepreneurial hubs East London Tech City and Silicon Roundabout, where a high density of technical talent and venture capital have created a ‘cluster effect’ that helps early-stage startups scale despite the broader economic headwinds.
The service – a government-backed scheme providing personal loans of up to £25,000 for business purposes alongside free mentoring – has delivered £250m in lending to over 25,0000 entrepreneurs in London since its inception.
The loans are backed by the government’s economic development bank, which is owned by the Department for Business and Trade, the British Business Bank.
Louise McCoy, managing director of Start Up Loans products at the British Business Bank, said: “Entrepreneurship is in London’s DNA.
“The city’s diversity, creativity and resilience continue to drive innovation and growth.”
It comes as small businesses across Britain feel the crunch from inflationary pressures and rising hiring costs with yet another hike to the National Living Wage in the pipeline for April 2026.
Lending to small and medium sized businesses has taken a hit in recent years, sparking government intervention to urge the UK’s big lenders to support smaller firms.
British Business Bank data revealed lending to the smallest businesses (under £2m turnover) from high street banks notched up 30 per cent year-on-year in early 2025.
Blair McDougall, minister for small business and economic transformation, said: “London is home to some of the brightest and most innovative entrepreneurs in the world and through Start Up Loans, we are ensuring they have access to the finance they need to reach their full potential.
“This is an impressive milestone for the programme, which has supported thousands of entrepreneurs across London, boosting businesses, job opportunities and the economy.”