Enterprise and Innovation

Consolidated Loan Fund

"Small capital loans for new and growing businesses across Leicester and Leicestershire"

This fund provides capital finance to start-up and growing small and medium sized businesses to support capital items that the business has not been able to finance through traditional routes (e.g. bank loans).

Organisation: Business Link Leicestershire

Completion Date: 31/03/2006

Location

Business Link Leicestershire Ltd

Project Description

Business Link Leicestershire will deliver this project over a term of two years with capital investment from the Leicester Shire Economic Partnership. The proposed completion date of the project is 31st March 2006. Preferential interest rates of 3% on loan repayments will enable the fund to be replenished and operate beyond this time scale - Danielle Gillet, Finance, Operations & Resources Director, Business Link Leicestershire

Background
Access to finance is an important issue for small business. The acquisition of capital items is of great benefit to businesses particularly to new start-ups, as they need to invest in equipment such as IT hardware. Many SMEs are simply unable to spend significant amounts of money on capital items when they start out and, therefore, need to attract funding from external sources.

This project provides the opportunity to fund such acquisitions, where access to more traditional sources of finance has not been possible, enabling new businesses a greater chance of success and expansion.

Fund details
This is a flexible fund offering small loans of up to £5,000 at a very preferential interest rate of 3%, with continued support and advice from Business Link. Loans are only available for the purchase of capital items. Capital item purchases are identified as essential to the continuation or expansion of the business, where other funding is not available i.e. this loan is money of last resort.

Business Link has a simplified application process and a Capital Development Loan Fund (CDLF) application pack is available from the Business Link Leicestershire offices at: 5b New Walk, Leicester, or by calling 0845 0700086, or visiting www.bllr.co.uk

Leicestershire's economy
Leicestershire has a diverse economy that needs to encourage business growth and sustainability, as SMEs represent 99% of the business population employing more than 70% of the workforce. The CDLF will provide much needed financial support enabling businesses to become established and grow in the market place and contribute to Leicestershire's economic success.

Outcomes

• The project has potential to assist up to 40 businesses with small loans, to be repaid over a period of up to three years. Business Link Leicestershire aims to deliver targeted financial support to SMEs across Leicestershire via a simplified application process.
• As well as increasing the sustainability of businesses, the project will allow the available loan funds to perpetuate for the foreseeable future. This will enable Business Link to continue to offer such loans beyond the completion date of this project.

Project Contacts

Project manager:
Danielle Gillett
Website: www.bllr.co.uk

For loan enquiries contact the customer service team at Business Link:
5b Charnwood Court
New Walk
Leicester LE1 6TE
Tel: 0845 070 0086

LSEP contact:
Niloofar Sarkari
Tel: 0116 257 5678
E-mail: niloofars@lsep.co.uk
Website: www.lsep.co.uk