The Phoenix Fund

If you are starting up or already running a business and have had problems raising finance, you may qualify for a Phoenix Fund loan of up to £10,000. 

The Phoenix Fund targets groups who are at present under-represented in business. These include:

• Black and ethnic minorities
• Women
• People with disabilities and
• Other under-represented groups such as ex offenders, former children in care and lone parents.
• Social enterprises also benefit under the scheme.  

Borrowing

• Loans can be up to a maximum of £5,000 for individual start-ups and up to £10,000 for team-led start-ups or existing businesses.
• Competitive interest rates: 12.68% APR (1% per month on the reducing balance).
• No arrangement fees or completion fees for loans.

You will have to provide evidence that you have been refused finance from at least one normal commercial lender.

A written business plan demonstrating the viability of the business proposal must be submitted with your application.

You will usually be expected to approach the Phoenix Fund through an intermediary who will provide assistance to write your business plan and on-going help during the duration of the loan. This loan is repayable over up to two years.

If your application for a Phoenix loan is successful, you will still be able to apply for an ordinary Credit Union loan, when you have been a member for three months.