NWDA - Transitional Loan Fund
What is it?
The funding initiative is aimed at both established and viable SME's based in or having a significant part of their operations within the Northwest region. Company's can apply for loans of £50,000 -£250,000 repayable over a maximum of 4 years.
Who will benefit from the scheme?
The funding is not intended to replace traditional borrowings but will be available to companies who are finding it difficult to obtain working capital in the current climate.
Requirements & application procedure
To apply you'll need a business plan, financial information and other supporting documentation.
In brief the reports we prepare in support of a funding application contain the following:
- Background history of the business;
- A business plan - including details of why the funds are required and what they will be used for (they cannot be used to reduce existing borrowings), the creation/retention of jobs etc;
- Demonstrate that the additional funds cannot be obtained from traditional sources;
- Confirmation that current financiers are willing to maintain the current borrowing facilities;
- An overview of recent trading performance;
- An assessment of the forecast trading information assuming the funds are received;
- Demonstration of the company's ability to service the requested borrowings over the specified period;
- We may also include fixed asset details, aged debtor/creditors and any other information we believe will support your application.
- Our report provides the NWDA with all the information they require to assess the suitability of the business for the scheme.
- Your application will be judged by the NWDA solely on its business merits, the chances of success, growth potential and any jobs likely to be safeguarded or created.
Eligibility Criteria
Businesses not generally eligible for loan finance from the fund:
- Subject to collective insolvency proceedings;
- Those in commercial property investment;
- Retail businesses;
- Those covered by EC sector restrictions including the production of synthetic fibres, shipbuilding, coal and steel, agriculture, including fisheries but excluding the processing and marketing of such products;
- Those which fall within the definition of a "business in financial difficulty" under the "Community Guidelines on State Aid for Rescuing and Restructuring firms in difficulty" *
* An SME, established for more than 3 years, shall be considered to be an undertaking in difficulty if it fulfils any of the following conditions:
- In the case of a limited liability company, where more than half of its registered capital has disappeared and more than one quarter of that capital has been lost over the preceding 12 months;
- In the case of a company where at least some members have unlimited liability for the debt of the company, where more than half of its capital as shown in the company accounts has disappeared and more than one quarter of that capital has been lost over the preceding 12 months;
- Where it fulfils the criteria under its domestic law for being the subject of collective insolvency proceedings.
