What can the loans be used for?
Each local authority will appraise and determine their respective loan applications at a local level. The timescale for determining applications is approximately 4-6 weeks. 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 all businesses. The interest rate is currently 6%, fixed for the period of the loan. The maximum repayment period is 5 years, although “capital holidays”, usually 6 months may be considered. The Fund will reserve the right to seek any form of security as appropriate. Security is usually taken in the form of standard security, bond and floating charge, personal guarantee or any combination of these.
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 the payment of the loan will be made. The total time from receipt of an application to receipt of the cheque is usually around 13 weeks.