Enterprise Loan
Enterprise Northern Ireland Loan Fund applications on the increase
T
by Andrew Reynolds, Loan Fund Finance Manager, Enterprise Northern Ireland The ENI Loan Fund
he economic climate over the past 18 months or so has
created a seriously tough and challenging environment for the Northern Ireland economy as a whole, but particularly affecting its SME sector.
So it will be no surprise that Enterprise Northern Ireland is reporting that applications for our Loan Fund products are up 35 per cent on last year for the first five months of 2010. With the banks cutting back on their business lending, the biggest single issue affecting small business owners in these difficult times has been the ability to access capital to fund the start‑up and development of their business. Over the past 18 months, Enterprise Northern Ireland, along with our partners, has led the way in helping small businesses deal with issues arising from the economic downturn. Through its Loan Fund, Enterprise Northern Ireland is able to provide loans to individuals who are looking to start, or are already running, their own business, who can demonstrate a viable business proposal, but who are unable to access mainstream sources of finance for all or part of their funding requirements.
There is much about the Loan Fund that is deserving of special mention in its support to businesses struggling to secure their required finance, particularly at the moment where it is seen rightly as a ʻlender of last resortʼ. The improved fixed interest of four per cent that we offer to existing businesses for loans from £1,000 to £25,000 is highly competitive with regards to current deals being offered by the banks
No quick fix
But the Loan Fund offers does not offer quick‑fix solutions to any businessʼ lack of credit or mounting personal debt by the business owner.
It offers a genuine helping hand for business and start‑up businesses that have a real chance of becoming successful and trading independently within a few years but for a variety of reasons, may not be able to access bank credit. Each application goes through stringent financial appraisals, including a full personal credit check on the individuals applying, to ensure that this government‑funded money is going to businesses where it is most needed. We have no doubt that the Loan Fund is actively supporting our SMEs with the greatest potential and it may be a few years before the impact of this will be understood.
The ENI Loan Fund was originally established in early 2002, to make funding more accessible to those starting or operating a small business and since then has provided over 1,050 loans totalling in excess of £6.2m to help businesses across the whole of Northern Ireland.
Now in its ninth year of operation, the ENI Loan Fund is receiving more enquiries about its products than at any time since its inception.
Our Loans
Our loan products are geared towards helping businesses get started and to develop a profitable trading history prior to obtaining mainstream finance. They are also there to help existing businesses with the costs associated with growing and expanding the business, but can not be used to settle/consolidate existing business/personal debt. We provide fixed‑rate personal loans for business purposes, which are intended as a short‑term funding measure (we do not seek to form business partnerships or to act as long‑term funders and do not provide venture capital with a view to sharing business profits).
• Start‑up Business
• Loans of between £1,000 to £10,000 • Repayable over one to three years
• Fixed interest rate – currently 6% (APR 11.4% to 11.7%)
• Existing Businesses (businesses trading for at least two years)
• Loans of between £1,000 to £25,000 • Repayable over 1 year to 5 years
• Fixed interest rate – currently 4% (APR 7.6% to 7.8%) Applications
As all loans are unsecured personal loans, the only information the Committee can base their decisions on, is accurate and up to date financial information, which will help us better understand the proposed business activity. We also consider applications from individuals with a poor credit history. Provided you have reached an agreement with your creditors and do not have any outstanding judgments against either you or your business, then we will still welcome your application.
Further details on the Loan Fund can be found on the Enterprise Northern Ireland website
www.enterpriseni.com, ringing 7776 3555, or e‑mailing
loanfund@enterpriseni.com or by contacting your local enterprise agency.
www.businessfirstonline.co.uk
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