"Think BIG! and Pathfinder Loans"
Has your company been struggling to raise working capital from the banks to finance growth of the business? Think BIG (Business Investment for Growth) might be able to help.
Think BIG and Pathfinder provides loans to existing, start up or early trading businesses that don’t meet the banks’ lending criteria but are able to demonstrate that they have a viable proposition for growth.
Who can apply?
Pathfinder: Available to those who have a viable business plan with 2-3 years financial projections. Will employ at least 2 people and based in Newark and Sherwood.
Think BIG: Available to existing small and medium-sized businesses in Newark & Sherwood with the ambition and potential to grow. As a guideline, we do not expect to provide loans to businesses with turnover of less than £150,000 or with fewer than 5 employees.
Loans will not be made to businesses involved in money-lending, gambling, pornography or religion. It is also unlikely that we will be able to provide loans for the development or purchase of property, or for vehicle purchase.
What size of loans are available?
Pathfinder: As a guideline loans are likely to range from £5,000 to £25,000 (typically £5,000 to £10,000)
Think BIG: As a guideline, loans are likely to range from £25,000 to £150,000.
Under what terms are loans available?
Repayments are made monthly, over a period ranging from 6 months to 3 years.
The interest rate charged will reflect the risk profile of the business, but will be around the commercial rate charged by the high street banks. There will also be a small arrangement and monitoring fee. Security may be required, depending on the risk profile of the business.
What will you need from me?
Once you have registered your interest, we will contact you to talk through your proposition. To assess its viability we will need to see your business case and your balance sheet and profit & loss accounts for the last 2 years, as well as up-to-date management accounts and financial projects for the next 2-3 years.
How do the repayments work?
Repayments will be made by direct debit from your business bank account. The first payment will be due one month after the loan is drawn. There is no penalty for early repayment of the loan.
Who is funding BIG?
The £2million fund has been created by Newark & Sherwood District Council, to encourage business growth within the district and create new jobs. The fund is being managed by a team of professional risk finance specialists on the Council’s behalf.
The loan fund is part of wider plan to stimulate economic growth in all business sectors and in particular those where there is existing strength and future potential, including engineering, information & communications technologies, logistics, food processing, and low carbon technologies.
Grant in Enterprise
As an existing business you could access up to £2,500 of funding to help your business. NBV have directly supported local businesses to access over £2m in grant funding over the past 3 years and they are now offering businesses in Newark and Sherwood the Grant for Enterprise.
Eligible businesses can claim up to £2,500 for specific projects or investments. In order to be eligible you must:
- Fit the criteria of Small and Medium Sized Business (SME)
- Have commenced trading
- Only trade business to business, not retail or business to consumer.
For more information on the grants available visit the NBV Grant in Enterprise website.
Invest to Grow Fund
The “Invest to Grow “ fund is operated through the University of Derby. The fund focuses on growth, innovation and the creation of sustainable jobs. The types of projects which would attract funding are:
- Innovation in products, process and systems
- Development or improvement of products and services
- Costs of expansion, including site and building infrastructure and capital equipment
There are many ways businesses can use the funding, here are a few examples but the list is not exhaustive:
- Capital expenditure (land, buildings, equipment)
- Staff costs (relating to the implementation of the project)
- Research, technical knowledge, IPR
- Other projects overheads and implementation costs
- Training- to introduce the innovation developed to the workforce
If you are an SME, Sole Trader or Partnership and can demonstrate that you have tried to access funds from elsewhere and have been unable to do so and that your project will result in the creation of jobs that can be sustained for at least 3 years you can apply.
Other sources of funding and business support available at local and national levels includes:
- Enabling Innovation is a programme focusing on 'enabling technologies', it aims to stimulate an innovation ecosystem designed to commercialise cutting edge R&D, support product and process innovation within SMEs and drive innovation through supply chains.
- Help with exporting through Department for International Trade
- www.gov.uk is a dedicated website offering a wide variety of business support, advice and guidance for your business along with a financial support search facility
- www.d2n2growthhub.co.uk and telephone 0333 006 9178. This service provides information regarding financial support and sources of business advice
Contact UsInvest Newark & Sherwood
01636 655260/01636 655277