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Small Loans for Business Small Loans for Business

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					Small Loans for Business
Small Loans for Business helps people start or grow their business by
providing finance which can be difficult to access from other sources.




If you require alternative formats of information in                     Small Loans
this document, please contact the Communications
team: 0115 988 8509                                                      for Business
                                                                         Helping your business
                                                                         take the next step
                      0115 988 8509


          0115 988 8509




          0115 988 8509


For further information on this product visit

www.emda.org.uk/smallloans
or call 0845 602 7355
For further advice visit

www.businesslink.gov.uk/eastmidlands
or call 0845 058 6644
                                                                                                                                 Small Loans for Business/First Enterprise Business Agency
For more information about Small Loans for Business
visit www.emda.org.uk/smallloans or call 0845 602 7355
                                                                                                I believe it’s never
Solutions for Business                                                                          been more important
Our purpose          Solutions for Business is a suite of highly targeted, publicly funded
                     products and services offering solutions to real business needs and
                     tackling market failure.                                                   to support small
                     Designed to drive qualifying businesses forward, it helps them to
                     grow and succeed by providing help in a number of areas. These
                     include starting up, understanding finance, developing people,
                                                                                                businesses in the
                                                                                                East Midlands
                     environment and efficiency, exploiting ideas, international sales and
                     marketing and growing your business.
                                                                                                                                                            Quamar Zaman, Chief Executive,




                                                                                                                                                       >
                                                                                                                                                            First Enterprise Business Agency
Our promise          Solutions for Business helps you make the most of business
                     opportunities and challenges. By targeting public money at real
                     business needs, it helps businesses create sustainable success.
                                                                                                FEBA’s loan fund exists     £4.8 million over nine          is currently very
Further              Small Loans for Business                                                   to help individuals start   years aims to help a            difficult, even in the
information on       Small Loans for Business provides loans of £3,000 – £20,000 to             or grow a business,         further 1,000 ambitious         best of circumstances.
this product         help start or grow a business when it’s difficult to secure finance from   particularly those living   individuals invest in their
                     other sources.                                                                                                                         I hope that many
                                                                                                in disadvantaged areas      initiative.
                     For more information or advice visit                                                                                                   more people benefit
                                                                                                or who cannot access
                     www.emda.org.uk/smallloans or call 0845 602 7355                                                       We’ve helped                    from the loan fund in
                                                                                                other finance.
                                                                                                                            ventures as diverse             the future. Our vision
Strategic partners   First Enterprise Business Agency
                                                                                                emda is investing in the    as manufacturing flax           is to see new and
                     Small Loans for Business is funded by First Enterprise Business            fund to ensure its work     bedding for horses              expanding businesses
                     Agency (FEBA).
                                                                                                continues – that new        in Lincolnshire,                offer jobs, security and
                     To contact FEBA call 0845 602 7355                                         businesses are started,     production of luxury            the opportunity for
                     or visit www.first-enterprise.co.uk
                                                                                                existing businesses         jams and pickles in             individuals to realise
                     East Midlands Development Agency
                                                                                                develop new products        Northamptonshire and            their dreams.
                     Small Loans for Business is funded by East Midlands Development            or services and jobs in     a Leicester company
                     Agency (emda).
                                                                                                the region are created      that developed
                     To contact emda call 0115 988 8300 or visit www.emda.org.uk
                                                                                                and protected.              biodegradable
                     European Regional Development Fund                                                                     packaging for suits.
                                                                                                The fund has helped
                     The European Regional Development Fund (ERDF) Programme aims
                     to strengthen economic and social cohesion in the European Union
                                                                                                turn a number of good       I believe it’s never
                     by supporting regional economic development. For more information          ideas into business         been more important
                     or advice on the East Midlands 2007–13 ERDF Programme                      ventures through            to support small
                     visit www.eastmidlandserdf.org.uk, call 0115 947 1727
                     or email europeanenquiries@emd.org.uk                                      loans with a total value    businesses in the
                                                                                                                                                            Quamar Zaman
                                                                                                of over £1 million.         East Midlands –                 Chief Executive,
Accessed             Your gateway to Solutions for Business products and services               Additional funding of       getting finance                 First Enterprise Business Agency
                     is Business Link where experienced advisers help match your
through              organisation’s needs to the most appropriate support. To find out
                     more about Solutions for Business call Business Link on
                     0845 058 6644 or visit www.businesslink.gov.uk/eastmidlands                                                                                                          3
Small Loans for Business/First Enterprise Business Agency        Small Loans for Business/First Enterprise Business Agency



Financing your initiative                                   What we don’t fund
                                                            Small Loans for Business cannot be used for
Small Loans for Business provides loans to
                                                            businesses involved in:
individuals to support good business ideas that
could be difficult to fund through other means.             >   Money-lending
Loans of £3,000 – £20,000 can be used to turn               >   Gambling
ideas into a new business or grow your existing             >   Purchasing or developing properties
business if you can raise 30% of the value of               >   Pornography
the loan.                                                   >   Religion

Loans can be used to:                                       How do I apply?
> Secure services                                           To be considered for a loan applicants
> Purchase equipment                                        must submit:
> Meet a shortfall in funding                               > A completed application form
Repayments are made over a period of between                > A comprehensive business plan
one and five years.                                         > Bank statements for the last six months
                                                            > Two years audited accounts or current
Do I qualify for a loan?                                      management information
Applicants must show they have a viable idea to             > Cashflow forecasts for two years
start or grow a business which could create or
                                                            Other financial information in support of your
protect jobs in the region. Applicants must be
                                                            application may be requested.
aged 18 years or over, have lived in or owned a
business in the East Midlands for at least
                                                            What else do I need to know?
18 months and have leave to remain in the UK.
                                                            Applicants will need to discuss their idea with a
                                                            panel of banking and other professionals that visit
                                                            areas of the East Midlands on rotation.
                                                            A poor credit history should not necessarily put
                                                            you off applying to Small Loans for Business.
                                                            All applicants are credit searched but the final
                                                            decision is also based on other criteria.
                                                            Interest will be charged at 10.25% for the period
                                                            of the loan. Loans are discretionary and should
                                                            not be seen as guaranteed.
                                                            Loans may not be used to buy a vehicle unless it
                                                            is essential to the core business idea.
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Small Loans for Business/First Enterprise Business Agency         Small Loans for Business/First Enterprise Business Agency



    Frequently Asked Questions
> Will anyone help me with the                              > Do you provide loans to companies?
  application process?
                                                              No. We lend to people who are individually liable
    Yes. Call 0845 602 7355 for a named loans                 for their loan. The loan however can be invested in
    officer to assist.                                        companies by recipients.

> Does my 30% contribution have to be cash?                 > What if my application is declined?
    Not necessarily. Funding from elsewhere can be            Loans are discretionary and some applications
    used but Small Loans for Business will not provide        will be declined. You will be advised in writing as
    100% of the project cost.                                 to why the application has not been successful.

> What is the interest rate?                                > What if the base rate of interest changes
    It is currently fixed at 10.25%.                          during the term of my loan?
                                                              The amount of interest you pay on the loan is fixed
> Is there a fee to set up the loan?                          so repayments would not change.
    No. Only interest on the loan is payable.
                                                            > Can I use Small Loans for Business to repay
> If my loan is approved when will I get                      existing debts?
  the money?                                                  No. The loans are designed to help establish
    It is usually within 3 weeks of approval by               or grow businesses.
    the panel.
                                                            > What happens if I can no longer afford to
> Can I pay the loan back early?                              make repayments?
    Yes and there is no penalty for early repayment.          If your business is still trading then we may
                                                              accept smaller repayments for a short period
> How do I make the monthly repayments?                       of time. If the business fails then the loan will
                                                              need to be repaid from other income earned
    By direct debit from your business bank account
                                                              through employment.
    on, or around, the 10th of each month.

> Do I make repayments straight away?
    The first repayment is due one month after the
    loan is drawn.




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