What is it?
Loans for businesses with viable job creating projects unable to raise their finance from conventional sources for whatever reasons. Poor credit history will not prevent you from applying.

Who can apply?
Start-up, 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 are unable to raise the funds from your Bank. Retail businesses are not priority and may struggle to gain support. Retrospective expenditure will not normally qualify.

How much?
Generally new start-ups will be limited to £10,000 maximum, otherwise amounts will depend on the strength of the project. An administration fee of 1% is deducted from the loan funds from the outset. We will always seek to lever in other funding as appropriate. There is a sliding scale of interest rates all of which are fixed from the outset of the loan. Up to £5000 rates are between 12%-14%. From £5,000 to £10,000 rates are between 10%-12% and above £10,000 between 8%-10%. Repayment periods are linked to cash flow and can vary from 12 months to 10 years.

What for?
Most of funds are available for capital purposes although there are limited working capital
funds also for the right projects. Support for vehicle purchase is not normally allowed.


Do I need security?
Loans can be unsecured but where funding is specifically for machinery we will look for a charge over the equipment in question. We can offer Small Firm Government Loans under the Guarantee Scheme.

How do I apply?
Click here to download the application form in pdf format. Alternatively you can phone/email the Fund Manager or his Assistant. They can also be accessed from our Partners at Business Link Humber, Hull Area Business Advice Centre. A business plan and cash flow projections will be required in all cases. The Fund Manager is willing to discuss your project in outline over the telephone prior to completing an application to give an indication as to whether your project meets the criteria.

What happens next?
Your application will be evaluated by the Fund Manager. Loans up to £5000 will be dealt with immediately and usually within 48 hours if all information is to hand, whilst above that figure the agreement of a committee is required and will take up to 10 days to obtain a response. The structure of any offer and its terms and conditions are entirely at the discretion of Hull Business Development Fund.

What else can I expect?
Where appropriate clients will be signposted to other support agencies to help with other
aspects of the business. A standard condition of all loans is that applicants must agree to be
monitored during the currency of their loan.