{311) defects and dislocation loops are formed after ion-implantation and annealing of a silicon wafer. Recent Transmission Electron Microscopy studies by Li and Jones have shown that sub-threshold dislocation loops nucleate from {311} defects. In our study, the conjugate gradient method with the Stillinger Weber potential is used to relax different configurations such as {311} defects with a maximum of five chains and perfect dislocation loops. From the formation energies thus obtained we find that there is an optimal width for each length of the {311} defects. Moreover the relative stability of {311}s and loops is studied as a function of defect size. We observe that at very small sizes the perfect loops are more stable than the {311}s. This may provide an explanation for the experimental observation by Robertson et al that, in an annealing study of end of range damage of amorphized samples, 45% of the loops had nucleated in the first 10 minutes of anneal. Out of these 25% of the loops could not have nucleated by unfaulting of {311}s. We propose that homogeneous nucleation, as against unfaulting of the {311}s, could be the source of these sub-microscopic loops.