To ask Her Majesty's Government whether banks are being encouraged to lend to entrepreneurs from ethnic minorities; and what plans they have, if any, to improve the lending rate to such entrepreneurs.
27 April 2021
The Government remains committed to supporting individuals and businesses of all backgrounds access the finance they need and continues to engage with the private sector on this important issue. Since March 2020, the Government has introduced a collection of emergency loan guarantee schemes available to businesses of all backgrounds which collectively approved more than £75 billion worth of finance through more than 1.6 million facilities.The ‘Future Fund’, launched in May 2020, also provides investment to high-growth companies impacted by covid, made up of funding from government and the private sector. As of 25 March, the Fund has committed over £1.2 billion to support over 1,200 companies of all shapes and sizes, in every region of the country, and across a variety of sectors. Senior management teams consisting solely of ethnic minority team members and those with both ethnic minority and White team members account for 61.6% of funding to companies that have been approved for Convertible Loan Agreements so far, worth £683.5m.In addition, entrepreneurs of all backgrounds may be able to access finance through the Start Up Loans program that operates through a network of local delivery partners and is managed by Start Up Loans, a subsidiary of the British Business Bank. As at 30 June 2020, the Start Up Loans program had delivered more than 73,700 loans, providing more than £610m of funding. Entrepreneurs interested in exploring their finance options further may also visit the British Business Bank’s Finance Hub to understand and identify suitable finance options to help their business to grow.