We are offering an Economic Loan Fund (ELF) to small and medium-sized businesses across the District to provide reliable support and help businesses thrive.
Council Leader, Steve Fritchley requested the loan be set up to help supplement our existing Business Growth Fund which provides grants to new businesses and existing small and medium-sized enterprise.
He added, “We have to do everything in our power to help businesses survive during these difficult times. If we can assist one business survive or save one job then we are achieving what we set out to do.
“The ELF is designed to offer an additional source of financial support to businesses who may not be able to get a bank loan and have the ambition to grow, but are held back by their ability to capitalise on their business proposals.”
A total of £150,000 has been made available to loan to businesses and the availability of these Council-backed loans gives businesses access to a principled and reliable ‘lender of last resort’. The loans provide a fixed-term loan with no early cancellation fees, no arrangement fees, no interest charged for the first 12 months and competitive rates thereafter.
Cabinet Member for Economic Growth Councillor Liz Smyth said: “We want to support businesses in the District to help them grow and thrive. We have already allocated two hundred thousand pounds to a second round of the Business Growth Fund scheme to provide grants to new business start-ups, and existing small and medium enterprises and this further funding underlines our commitment to supporting the local economy.”
The ELF offers loans of between £2,000 and £10,000 and are available for a wide range of projects for both capital and revenue expenditure with a repayment term of between two and five years. Terms and conditions apply.
Terms and conditions
Loans between £2,000 - £10,000 are available for a variety of projects, and can fund both capital and revenue expenditure with a repayment term of between two and five years.
There will be no interest charged on repayments for the first 12 months, thereafter interest will be charged at 5% above the bank base rate as at 30 September, and will be reviewed annually. The interest rate until 01/10/2021 is 5.1%. Repayments are on a quarterly basis.
Eligibility Criteria and Activity
To apply for a loan, you must meet the following eligibility criteria:
- Your business is located in Bolsover District. Or, securing the Loan enables a move into the Bolsover District
- You are a sole trader, partnership, or limited company.
- You operate either as a small or micro business (as defined by the Small Business, Enterprise and Employment Act 2015 and the Companies Act 2006), or as a small or medium sized enterprise (SME) with fewer than 250 employees, a turnover of less than 50 million Euros, or a balance sheet total of less than 43 million Euros
- You are an established business of 2+ years and can demonstrate growth through increased turnover/profitability from your last two years of accounts. If you haven’t yet started your business, or have been trading <2 years, you may be eligible for a loan where a strong business case exists. See GOV.UK for more information about the government backed start up loans which should be explored first.
- You have business premises, i.e. you are liable to pay business rates (businesses getting small business rate relief are also eligible). You are also eligible if you will be liable to pay business rates as part of the project, for example, the Loan will enable you to move into business premises within the Bolsover District
- You are able to demonstrate that the Loan will support your plans for business growth. If your business has been adversely affected by the impact of Covid-19 and can demonstrate that the loan will help your business to recover from income losses then you may still be eligible.
- You can show that the loan will be affordable at the time of your application
- Eligible projects are those that will support businesses to innovate, diversity, expand or
develop, and achieve one or more of the following objectives:
- Carbon reduction and addressing climate change
- Making reasonable adjustments to premises or working practices and improving accessibility for all
- Improving and enhancing use of digital technology
- Safeguarding existing jobs and creating new jobs
- Maintaining or relocating to premises within the Bolsover District.
- Any loan must fund proposals that would benefit the local economy and have no adverse impact on local communities
- Any loan must fund business proposals that would be deliverable in a reasonable time frame