20% of government loans, which have helped 75,000 Start-Up businesses across the UK, have been issued to BAME entrepreneurs.
The Start-Up Loans programme, backed by the Government led British Business Bank, provides financial support to businesses who may struggle to receive a commercial bank loan.
Of the 20% of BAME recipients, 23% are from Asian ethnic backgrounds, while 29% are from mixed ethnicity groups.
Regional breakdowns also show how the North West of England received the highest amount of loans outside of London with over 9,000 entrepreneurs receiving around nearly £75 million in financial support to grow their business.
Nearly 40% of the applicants for the loan were female entrepreneurs, while 33% of the businesses were unemployed when they applied for the loan.
Business Secretary, Alok Sharma, explained the importance of funding to start-up businesses and outlined how 20% of BAME entrepreneurs is an important “reflection of society”
Alok Sharma said: “The Start-Up Loans programme was set up by the government-owned British Business Bank to give funding and support to entrepreneurs who might otherwise struggle to access it and to help ensure the UK’s business community is a true reflection of society.
“I am therefore pleased that almost one in five of loans awarded since 2012 have been made to support Black, Asian and Minority Ethnic entrepreneurs and their businesses.
“As we recover from Coronavirus our plan to build back better will level up every region and sector of the UK economy, backing makers, doers and innovators regardless of background.”
Kemi Badenoch, Exchequer Secretary to the Treasury, said: “Small businesses are the backbone of our economy and key to our recovery from the pandemic. That is why we’ve provided an unprecedented support package to keep them in business and protect jobs.
“But our support to small business didn’t begin with coronavirus and it will continue long after we’ve beaten it. Today our Start-Up Loans scheme has reached a milestone by providing more than 75,000 loans to our smallest businesses across a diverse range of entrepreneurs.”
The Start-Up Loans programme was formed in 2012 and support businesses in the early stages of their development to provide progressive financial support for new businesses and entrepreneurs. Around £623 million has been invested in start-up companies since the programmes were formed.