The government has pledged a further £10.5 million to the Phoenix Challenge Fund, a scheme which helps budding entrepreneurs from disadvantaged communities start up their own businesses.
The finance, announced by the Small Business Service (SBS), will be directed towards 25 areas in the UK via the network of Community Development Finance Institutions (CDFIs).
This latest round of funding follows a £11.3 million cash injection to the Phoenix scheme last October.
The government claimed that the new money will help fill the gaps that exists in small firms funding in certain parts of the country and will provide greater opportunity to underrepresented groups, such as ethnic minorities and women.
It is hoped the CDFIs will be able to use the extra money to reach entrepreneurs who have failed to secure funding from traditional sources, such as banks.
Nigel Griffiths, the small business minister, said that the government recognised that CDFIs have a vital role to play in providing finance to some of “our most imaginative and tenacious entrepreneurs.”
“CDFIs are filling a vital gap in access to finance in more disadvantaged communities, forming a bridge between the public and private sectors.
“CDFIs are helping us to provide enterprise opportunities for all, and ensure that the best possible support us in place for those who want to start or grow their own business – no matter what their background,” he said.
