Loan Finance

Small loans for business provide loans to start-ups, SMEs and social enterprises in the East of England

What is it for?

To provide loans with flexible repayment terms to groups who typically are refused finance to encourage and make it easier for more people to start up and grow their own enterprises.

Eligibility criteria

To be eligible for a small business loan you must have:

• Proof that you have tried to obtain funding from traditional sources such as your bank or building society and been refused for whatever reason - have a poor or no credit history, etc.
• A workable business plan ideally demonstrating the potential to create new jobs

Who is it run by?

Small loans for business are managed on behalf of EEDA by Foundation East.

How can I apply?

To find out if you are eligible for this loan, or to find out more please contact Foundation East on 01284 757777 or visit www.foundationeast.org

EEDA Regional Loan - Transition Finance

EEDA's regional transition loan is available to established growth businesses that have a short term funding need.

Who's it for?

Loans are available to SME's that

• have been unable to get funding from traditional sources
• are based within the east of England
• have a minimum turnover of £1m
• have a 3 year record of sound, steady development of its core business in its sector
• are viable in the long term
• have a short term funding need.

What it is not for

Loans will not be made available to businesses looking to refinance existing financial arrangements

How much can I borrow?

The minimum loan is £100k; the maximum loan is £150k. 

Who is it run by?

The loan fund is managed on behalf of EEDA by Finance East.

How can I apply?

To find out if you are eligible for this loan, or to find out more please contact Finance East on 0845 180 0580 or alternative e-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

More information

What is the application process?

Finance East will discuss your requirements and make an initial assessment of suitability at the point of initial contact.  Should it be felt that you meet the criteria you will be invited to submit a full application form and business plan.  Subject to assessment, should you be successful in securing a loan the funds will be made available to you within 4 - 6 weeks of the date your original application was received.

Exclusions

The following Sectors are excluded

• Land and property development, dealing and investment
• Provision of debt and equity finance and Financial Services in general
• Accountants and the legal services
• Hotels
• Nursing and residential care homes
• International motor transport
• Agriculture
• Forestry and timber production
• Horticulture

EEDA Regional Loan - Growth Finance

EEDA's regional growth loan is available to new and existing business in the East of England with the potential for long term growth.

Who's it for?

Loans are available to SME's that

• Are based within the east of England
• Have a minimum turnover of £500k (This can be complied with on an annualised basis using at least 6 months trading numbers and in the knowledge that there are no exceptional/seasonal revenues in the period used)
• Have growth potential (see more information)
• Have a long term investment need

What it is not for

• Loans will not be made available to businesses looking to refinance existing financial arrangements
• Loans will not be made available to businesses looking to raise working capital

Who is it run by?

The loan fund is managed on behalf of EEDA by Finance East.

How can I apply?

To find out if you are eligible for this loan, or to find out more please contact Finance East on 0845 180 0580 or alternative e-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Key terms

• Interest is agreed on a case by case basis reflecting the level of risk (Between 5 - 9% above base rate)
• Businesses may borrow between £50,000 and £200,000 which may be provided in tranches
• Repayment is over a 3 to 5 years (a capital repayment holiday can be considered)
• Security is subject to risk assessment and in most cases will subordinate to the security of any other lenders
• Fees:

1. Arrangement fee 2%
2. Annual monitoring fee 1%
3. Legal costs £500 fixed fee

• In place of an equity stake a premium ranging between 0.25% and 1% will be levied on turnover allowing owners to retain their current capital stake
• Prepayment costs are calculated as a percentage of the sum repaid plus a multiple of the annual turnover levy

More information

What is the application process?

Finance East will discuss your requirements and make an initial assessment of suitability at the point of initial contact.  Should it be felt that you meet the criteria you will be invited to submit a full application form and business plan.  Subject to assessment, should you be successful in securing a loan the funds will be made available to you within 4 - 6 weeks of the date your original application was received.

What do we mean by growth potential?

• Loans will be made in those companies able to meet the following criteria:
• A clear business strategy
• Capable of significant growth
• A business plan demonstrating;

1. a viable product or service
2. a ready market
3. a management team with relevant background
4. Intellectual Property rights - as appropriate
5. evidence of a strong commitment to the enterprise from the proprietors both in the past and future;

• Established in product markets that are likely to grow strongly in the medium term. 
• Able to demonstrate competitive advantage, probably in niche markets;

Exclusions

The following Sectors are excluded

• Land and property development, dealing and investment
• Provision of debt and equity finance and Financial Services in general
• Accountants and the legal services
• Hotels
• Nursing and residential care homes
• International motor transport
• Agriculture
• Forestry and timber production
• Horticulture