Funding for your business
East Midlands Transition Loan Fund
There is clear evidence that the current economic downturn is leading to a significant tightening in the availability of commercial finance, with an increasing number of businesses, with viable business plans, being put at risk as a result.
A £5 million Transition Loan Fund (TLF) has therefore been established by East Midlands Development Agency (emda) in response to these conditions.
Loans will generally be made to small and medium-sized enterprises (SMEs) that have been trading for at least six months and that are located in the East Midlands counties of Derbyshire, Leicestershire, Lincolnshire, Northamptonshire, Nottinghamshire and Rutland.
Loans will only be made to businesses with good management and viable business plans, which demonstrate an ability to service the borrowing required or refinance when financial markets stabilise, but which are currently unable to obtain sufficient commercial finance.
Loans will only be made where existing financiers are, at the time of application to the fund, willing to maintain borrowing facilities on agreed terms. Loans may not be used to pay down existing finance.
However, loans can also be made where a financier has withdrawn or reduced existing borrowing facilities, or refused new borrowing facilities, prior to application to the fund.
Businesses involved in commercial property investment, retail or other sectors precluded from public sector financial support under EU legislation would not be eligible to apply.
Typically loans will range from £50,000 to £250,000 and the term of the loan will be for up to 3 years.
Interest rates will be charged on commercial terms, typically between 5% and 8% over base rate, and an arrangement fee of 1% of the loan will be payable at the outset.
Any assets available within the business will be taken to secure the loan.
For more information contact Business Link on 0845 058 6644 or email us info@businesslinkem.co.uk
Around the region
- Introduction
- Use our grant finding service
- Resource Efficiency Grant
- Rural Development Programme for England
- Catapult Growth Fund
- East Midlands Early Growth Fund
- Grant for Research & Development
- Investment Readiness
- Lachesis Fund
- Selective Finance for Investment in England
- Here's how I accessed funding to build my business
- Access to Finance (A2F) Events
- East Midlands Transition Loan Fund
