Budding young entrepreneurs can apply for loans averaging £2,500 in a new £1million Government scheme, targeted at faith/ethnic minority communities.
Through its official delivery partner, Elevation Networks, the Department for Business, Innovation & Skills will distribute its Start-Up Loans to 350 young people for capital to start or grow a new business. 18 to 30-year-olds, living in England and looking for finance, can apply by filling out a brief application form.
As the Start-Up Loan will be a personal loan, four or five people from the same company can apply for a loan to invest in the business. The final amount will be determined by the overall application, and there is no upper limit. Successful applicants will have access to a mentor, monthly training and other benefits.
The loan is repayable within five years at a fixed rate of interest, currently 3%. Capital repayment holidays are available (of up to one year), but interest must be covered monthly throughout.
Social entrepreneur and founder/trustee of Elevation Networks, Samuel Kasumu, will tour faith and community groups to promote the initiative this year. He said, “Many times, when the Government and other institutions deliver programmes, people from BME backgrounds tend not to be engaged for various reasons.
“With us setting up a bespoke campaign in the coming weeks, we are confident that with the Start-Up Loans initiative there will be a legacy of inclusion that yields great results.”