Subsidised and Guaranteed Loans

2. Are You Likely to Qualify for Other Schemes?

While each supported loan scheme has its own criteria, they tend to fall into the same four categories - purpose, location, industrial sector or the availability of extra financing.

2.1 Broadly speaking, all supported loan schemes are intended for a purpose to create or protect jobs.

• You need to show your project will make a positive contribution to employment. This could include training and skills development.
• Loan schemes favour projects with a high growth potential.
• Loan schemes are often only available for capital projects such as investment in plant and equipment or computer networks, but not where conventional asset finance is available. The gradual process of company development does not normally qualify.
• Purely local consumer services, such as shops, are likely to be excluded.

2.2 You may be eligible for supported loans if you intend to establish your business in an economically depressed location particularly if you are going into an area with a high level of unemployment.

2.3 Most loan schemes favour particular industries - usually in the manufacturing and industrial sectors.

• Crafts, tourism, and distribution operations also receive some support.

2.4 Most schemes insist that extra financing is available alongside the loan.

You usually have to show commitment by providing part of the finance yourself.