Small Loans for Business provides business loans to individuals, aiming to support good business ideas that could be difficult to fund through other means.
Loans can be used to:
- Secure services.
- Purchase equipment.
- Meet a shortfall in funding for specific new projects, not existing running costs.
Loans of £3,000 to £20,000 can be borrowed to turn ideas into a new business or grow an existing business! Applicants must be able to contribute a minimum of 30% of the value of the loan.
Repayments are made over a period of between one and five years. Interest will be charged at 10.25% for the period of the loan. Loans are discretionary and should not be seen as guaranteed. However, our Enterprise Development Officers can help you with the paperwork during the application process.
Are you eligible?
Basic criteria:
- Applicants must be aged 18 years or over.
- The applicant must have resided in or have had a business in the East Midlands for more than 18 months and have leave to remain in the UK.
- The business must be located in the East Midlands.
- The business must comply with all statutory, regulatory and legal requirements.
- The business must demonstrate either job creation or safeguarding.
- The viability of the business or proposition must be demonstrated.
- A minimum contribution of 30% is required from you where the loan is being used to meet any shortfall in your funding requirements.
For the full requirements please download the application form.
Small Loans for Business will not be given to:
- Businesses involved with religion, pornography, gambling, money lending, property purchases or property development.
- Fund the purchase of cars, except in the case of commercial vehicles deemed to be essential to the business. Leasing is the preferred route for all vehicle purchases.
- Applicants who already have access to sufficient funding for their venture.
- Applicants who do not have leave to remain in the UK.
What is needed in the application process?
- A completed application form, available from First Enterprise Business Agency.
- A comprehensive business plan.
- Bank statements for the last six months.
- Two years audited accounts or current management information for existing businesses.
- Cashflow forecasts for two years.
- Curriculum Vitae (CV).
- Photo ID and a recent utility bill evidencing the home address.
- Two references for each applicant.
- Other financial information may be requested to ensure that the financial support sought meets our required criteria.
Good to know
- A credit search is carried out on each applicant before consideration is given to completing a full application. An adverse credit history should not discourage you from applying but a low credit score will affect your application.
- Although loans are not permitted to limited companies, consideration will be given to lending to a Director to enable capital to be introduced into a business.
- A dedicated contact will notify you of the timescale for the assessment of your application.
- Any loan is discretionary and financial support should not be regarded as guaranteed under any circumstances.
- Representatives from the loan fund, commercial banks, business support agencies and local authorities across the East Midlands sit on loan panels to assess applications.
Small Loans for Business is part-financed by the European Regional Development Fund.
Consumer Credit Licence No: 623267
How to apply
If you think that your business could benefit from Small Loans for Business funding please complete an application form which you can download by clicking here or contact us if you would like to learn more. Small Loans for Business is operated by Enterprise Loans East Midlands, an associate of First Enterprise Business Agency.
Enterprise Loans East Midlands Limited 90 Radford Road Hyson Green Nottingham NG7 5FU
