Start up loans for ethnic minority businesses
Every business needs initial capital to start. Sadly, some businesses can find it difficult to access the finance they need to begin or expand. This is true of businesses owned by ethnic minorities.
Start or grow a business
One million of the UK’s nearly six million SMEs are owned by ethnic minority business owners – they generate around £74 billion each year, and employ three million workers according to research from Small Business Commissioner.
Despite this, minority business owners often struggle to access finance from mainstream banks and other financial services. This barrier can stem from a variety of factors, including location, lack of networking opportunities, or previous financial disparities.
Thankfully, there's a way to level the playing field. The government-backed Start Up Loans scheme is helping minority business owners turn innovative ideas into reality, driving social change and bringing diverse perspectives to the market.
Key features
Loan amount
Borrow up to £25,000 (BEF average loan size = £11,000).
Interest rates
6% fixed. Take advantage of a low interest rate to help start or grow your business.
Repayment terms
Enjoy flexible repayment options spanning 1 to 5 years.
One Business, four loans
Up to four partners or directors can each apply for a Start-Up Loan for the same business.
For businesses trading less than 36 months. Take advantage of no arrangement fees, no early repayment fees, and up to 12 months of complimentary post-loan mentoring.
What is a start up loan
Whether you're just starting to shape your business idea or you're looking to grow your start-up, securing a Start Up Loan can help you flourish while contributing to the prosperity and resilience of your local community.
To date, Start Up Loans have supported 110,699 businesses, with over 20% of those being owned by minority business owners. For minority business founders, they are often the stepping stone to bridging the gap between potential and success.
Why choose BEF
Tailored support
We get that every business is different, so we fit our help to match what you need and what you're aiming for.
Real people making decisions
No cold, heartless computers here. Our friendly and experienced Investment Managers are the ones who make the call.
A trusted partner
We're here to offer you flexible money options to help you start and when grow.
Teaming up
We work closely with the British Business Bank to help new businesses in the North East, the Humber, and Yorkshire.
BEF is more than just a place to borrow money; we're a trusted partner who really wants you to do well. We're all about helping people get the money they need to start their dreams.
Apply
How much will i repay if i borrow £11,000
£11,000 loan repayable over 5 years. 60 monthly payments of £212.66. Fixed interest rate of interest 6% per annum. Total amount of credit £11,000.Total interest payable £1,759.60.Total cost of credit £1,759.60. Total amount payable is £12,759.60.
This is an illustrative example for a loan of £11,000. Loans of up to £25,000 are available from the Start Up Loans Company. Rates and terms will vary for other loan products from BEF should you not be eligible for a Start Up Loan. Further information is available on request.
Find out how much you could afford to borrow with BEF's Start Up Loan calculator.
How do i get a start up loan from BEF
Start by completing and submitting your application online. This initial step gathers essential details about your business and funding needs.
Once your application is received, we'll perform a credit check and conduct an initial review.
We’ll review your business plan and supporting documents in detail.
Following the review, we’ll make a decision and present you with a loan offer.
Usually, our team of Investment Managers will help you finish everything up within six weeks after you apply.
Apply
Can i get a start up loan
Yes, you can. Start Up Loans are available to aspiring and existing business owners regardless of ethnicity, gender, and religion. Accessing a Start Up Loan could help take your idea or business to the next level.
To be eligible, you must be 18 years of age or older, a current UK resident, and either starting a new business or have been trading for up to 36 months. Additionally, you must be unable to secure finance from other sources, with self-declaration being acceptable. Your business must be based in the UK, and you must have the right to work in the UK. The type of business and the purpose of the loan must be eligible under the terms of the scheme. Finally, you must pass the Start Up Loan Company credit checks and demonstrate the ability to repay the loan.
Frequently asked questions
Of course, you might have some questions. Here are some of the most common ones we get about Start Up Loans. If you have more questions, feel free to get in touch with us.