Acorn Loan
What is it?
Loans for business with viable job creating projects unable to raise all their finance from conventional sources for whatever reason. Poor credit history will not prevent you from applying.
Who can apply?
Start-ups, existing business, community and social enterprises, inward investors moving to Hull.
Is my project eligible?
Your business must be based in Hull, HU1-HU9.
Projects must be realistic and viable. You must show that you have been unable to raise the necessary funding from your bank. Retrospective expenditure will not normally qualify.
How Much?
Maximum loan will be £15,000, £10,000 for start-ups less than 18 months old. Maximum loan period will generally be 3 years. Interest rates are as follows: Up to and including £5,000 12% fixed, £5,001 to £10,000 10% fixed and above
£10,001 8% fixed. We will always seek to lever in other funding and grants where appropriate.
What for?
Loans are for capital base projects only and cannot be used for working capital or revenue type purposes. Support towards the cost of vehicles is not eligible.
Do I need security?
Generally Loans will be unsecured. However, if we perceive a lack of commitment on the part of the applicant, we may look to personal guarantees.
How do I apply?
Click here to download the application form in pdf format. Alternatively you can phone/email the Fund Manager. They can also be accessed from our partners at Businesslink, Business Interactions, Hull Area Business Advice Centre, Princes Trust, Deep Alliance and Sirius. A business plan is required in all cases. The Fund Manager is happy to discuss your project in outline over the telephone and give an indication as to whether it meets the criteria.
What happens next?
Your application will be evaluated by the Fund Manager. Loans up to £5,000 will be turned around within a 2 week period whilst applications above that will need to be submitted to a panel for a final decision. In those cases it could take up to 6 weeks to obtain a decision. The structure of any offer and its terms and conditions are entirely at the discretion of the Hull BDF.
What else can I expect?
Where appropriate the Fund Manager will provide best practice advice pre and post loan and signpost applicants to other local and regional business support agencies. A standard condition of all loans is that applicants must agree to be monitored.
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