Micro Business Loan

Objectives & Assistance

• Provision of INTEREST FREE ‘micro’ loans to encourage the creation and growth of small businesses which can contribute to new jobs in the local economy.
  
  
• Assist income-generating community enterprises to develop projects which enhance their opportunities for long-term sustainability and/or stimulate the local economy.
  
  
• Loans of up to £2,000 are available for general start-up costs, marketing (including trade fair attendance) e-commerce enablement and to encourage tourist accommodation providers to ‘gain a star’.
  
  

Eligibility & Conditions

• Applications considered for business start-ups and existing businesses located in the Outer Hebrides, which can demonstrate: commercial viability, employment creation and/or generate additional demand for products and services.
  
  
• Each application will be considered on its own merits. However, projects in areas which are adequately served by similar existing businesses are unlikely to meet the eligibility criteria.
  
  
• Loan funding is available only to applicants unable to raise the total capital required from other commercial, private or public-sector sources.
  
  
• Applicants may be sole-traders, partnerships, limited companies, co-operative groups, community enterprises or other legitimate trading entities.
  
  
• Projects located in Iomairt aig an Oir (Initiative at the Edge) areas and/or businesses operating in key sectors (creative, tourism, food & drink, renewables, manufacturing, processing, IT) and/or key groups (50 plus / female entrepreneurs, long-term unemployed and community / social type enterprises) may attract enhanced levels of assistance.
  
  
• New businesses must provide a Business Plan along with Financial Projections (3-year). Existing businesses should provide a proposal overview and any other information considered necessary.
  
  

Only one loan can be applied for at any one time, with a maximum of two CnES loans running at any one time. A second loan cannot be provided unless 12 months have lapsed since the last loan was provided with at least 20% of the first loan repaid.

Funding

Applies from April 2008 (subject to available funding) – Loan terms are normally updated in January each year

• Term Loans: Up to £2,000
  
  
• Repayment Period: Up to 2 Years
  
  
• Interest: FREE
  
  
• Security: Unsecured
  
  
• Capital Repayment Holiday: Discretionary - up to 6 months
  
  
• Arrangement Fee: FREE
  
  
• Level of Funding: Up to 50% of costs (up to 60% enhanced)
  
  

Contact Us!"  for help and advice, applications, or more information, at:

Stornoway – 01851 707 317 – business.advantage@cne-siar.gov.uk
                               
Balivanich (John Huson) – 01870 602 425 – jhuson@cne-siar.gov.uk
                               
Daliburgh (Lynne MacMillan) – 01878 700 863 – l.macmillan@cne-siar.gov.uk