The Loan Fund exists to help people with some degree of social, financial or educational disadvantage to start their own business.

The Loan Fund is open to small businesses in Tyne and Wear, Northumberland and North Durham, typically offering start up loans of up to £5,000.  

In addition to the Loan Fund, a business advice service is also provided. To date, 65% of the businesses helped by the fund continue to trade after 3 years.

What is Available?

Start up loans of up to £5,000 are available over a maximum of 36 months.

Eligibility

• The Loan Fund is open to applicants from Tyne & Wear, Northumberland and North Durham
• Businesses which have commenced trading are not eligible
• Applicants must be aged 18 or over  
• Applicants will have to demonstrate some degree of social, educational or financial disadvantage to qualify for consideration. For example, funding cannot be obtained from a traditional lender 
• All loans are made to individuals and not Limited Companies
• Directors of Limited Companies can apply in their personal capacity   

Applications

• Applicants should be a client of a recognised Enterprise Agency, who will submit the completed application to the Loan Fund Manager at PNE
• A completed application will comprise an Application Form, a Business Plan, and a letter of recommendation from the Agency  

Decisions 

• A credit check will be carried out on all applicants, and an adverse credit history will be taken into account when assessing an application
• The Loan Fund has limited resources, and it must be understood from the outset that "going through the process" does not guarantee success. The decision whether or not to offer a loan is made by an independent panel of Trustees whose decision is final
• Having agreed a loan the successful applicant must have in place a business bank account before the loan can be released
• Declined applicants cannot reapply, nor will the Trustees or Loan Fund Manager enter into any correspondence regarding a decision

The Loan Application Process

All applications submitted must include:

• A viable & investment ready Business Plan supported by cashflow and Profit & Loss account forecasts for the first trading year.
• C.V. for each person party to the business
• Photocopy of either a passport or drivers licence (for each party to the business)
• In the case of partnerships/limited companies a separate 'Additional Applicant Information Sheet' must be completed by each party other than the lead applicant
• The application must be signed by all parties to the loan
• Important - all applicants must download and read the 'Essential Information' sheet to establish and ensure eligibility

Downloads

To download the relevant application form simply place your mouse cursor over the appropriate section heading and 'left click'

A)    Essential Information Sheet

This sets out the essential criteria for the Loan Fund which you must satisfy to make an application

B)     Application for submission via an Enterprise Agency

• This Application Form is to be used for all submissions via an Enterprise Agency
• In addition to the mandatory information listed above all applications have to be accompanied by a Letter of Support from the relevant Business Advisor

C)    Application for direct submission to the Loan Fund

• Applicants who have not sought/gained the assistance of an Enterprise Agency in the preparation of their Business Plan may apply direct to the Loan Fund using this application form
• All such applicants need to recognise the quality of the Business Plan will be a relevant factor in the appraisal process

D)     Additional Applicant Information Sheet

• To be completed by those who are party (not the lead applicant) to an application involving a partnership or limited company