What are Small Loans for Business?

Small Loans for Business provide small loans of between £3,000 and £50,000 to new and growing businesses and social enterprises in the Northwest.

It was set up by the Northwest Regional Development Agency (NWDA) to encourage and make it easier for more people to start up and grow their own enterprises, creating jobs and contributing to the success of the Northwest economy.
The key benefits of small loans for business are:
• Finance for your business, usually unsecured
• Loan repayments to suit your needs including payment holidays
• Validation of your business plan
• Ongoing support to help you establish a track record

The scheme is funded by the NWDA, ERDF and private sector partners, so you can be assured that it’s a credible and stable way to fund your organisation’s growth.

Who is it aimed at?
The Small Loans for Business scheme is aimed at people already running or looking to start one of the following ventures:

-New or small business
-Social enterprise
-Not-for-profit organisation

The main criteria is that you have evidence that you have tried to obtain funding from traditional sources, such as a bank or a building society, but have been rejected.

As long as you’ve got a workable business plan, with the potential to turn your ideas into reality and create new jobs – even if it’s just one or two – you could apply for a Small Loan for Business.

How does it work?
You can apply for any size of loan between £3,000 and £50,000. To do so, you’ll need to complete an application form and return it to us, along with your business plan detailing what you need the loan for, so that we can evaluate your plans.

We’ll judge your application solely on its business merits, the chances of success, growth potential and any jobs likely to be created.

If your application is successful, we will lend you the money for an agreed period of time, usually between three and five years. You can then use the money to help put your plans into action. The loan scheme is managed by our network of regional partner organisations. You’ll automatically be assigned to the appropriate regional partner for your area.

Or if your organisation is a social enterprise, to the specific partner that deals with your sector.

As with any loan, you’ll be charged interest on the amount you borrow. You’ll need to ensure that you have enough money to make the monthly repayments on your loan.

Am I eligible?

The Small Loans for Business scheme is open to anyone in the Northwest which covers Cheshire, Merseyside, Greater Manchester, Lancashire and Cumbria.
You’ll need to prove that you’ve tried to obtain funding from elsewhere and been rejected, either fully or partially, perhaps due to a poor credit score, lack of security, insufficient track record or plans that traditional lenders consider to be too risky. If you can do that, then you can apply for a Small Loan for Business. Our decision on whether to offer you a loan is based on the viability of your current business plan and your ability to repay the loan, not on your past history.

The scheme is open to everyone, and we particularly welcome applications from women, minority groups and businesses in deprived areas.

How do I find out more?
To find out more, you can visit our website at www.nwda.co.uk/finance, where you can find more information on the scheme and complete an enquiry form online.

Alternatively, telephone us and we’ll be happy to give you more information. Simply call 0871 384 1021 to speak to one of our advisors in your area. You could be just a phone call away from putting your business plans into action.