FAQ's

What can the loans be used for?
Loans can be used for the purchase of plant and equipment (new or used), for the provision of working capital and the purchase of property. Loans cannot be used for speculative property development or to obtain private cars.

What are the main terms of the Fund?
Loans up to £50,000 are available to existing businesses trading for more than 2 years, while loans up to £30,000 can be arranged for new or existing businesses trading for a shorter period of time. The interest rate is 2% above Bank Base Rate, fixed for the period of the loan. The maximum repayment period is 7 years, although “capital holidays”, usually 6 months may be considered. As a generality, loans under £20,000 will require no legal security. However the right is reserved to take security on loans below £20,000 where it is appropriate to protect the investment

How does the Fund work?
A business plan supported by audited accounts etc., where appropriate, will normally be prepared and submitted to the economic development unit of the local authority. There is approximately a four weekly meeting cycle and, depending on when the application is received, a decision can usually be made within 4-6 weeks.

How long does the application process take?
Normally, a decision can be made about your application within six weeks. If successful, a loan offer would then be issued with certain conditions to be met as appropriate. As soon as these conditions are met a cheque will be released to you. The total time from receipt of application to receipt of cheque is usually around 13 weeks.