Existing businesses run by young people and headquartered in Scotland can access the Young EDGE Loan Fund if they have been trading for more than one year (or up to 10 months if currently working with The Prince’s Trust).
How much can I borrow?
The minimum you can borrow from the fund is £2,500 and the maximum you can borrow from the fund is £25,000.
What are the main conditions of the Growth Fund?
Loans can be repaid over a maximum period of 5 years. Initial capital only repayments of £50 for up to 3 months may be considered. The interest rate on the loans is currently at 4% per annum and is fixed for the term of the loan.
Are there any age restrictions?
All principals of the business (sole trader / partners / directors) must be aged between 18-30 years of age. Evidence will be required to confirm the age criteria.
At present we can only offer loan funding to Limited Companies. We are currently awaiting approval from FCA to offer loans to sole traders and partnerships.
What can the loan be used for?
Loans can be used for a wide range activities associated with the business;
- Working Capital - money required to meet the day to day costs of running the business,
- Development Finance - money required to expand the business, for example marketing,
- Commercial Premises - deposit, costs of moving, improvement,
- Plant and Machinery - deposit, tooling, installation, training,
- Intangible Assets - patent costs, IT software and licenses,
- Gaps in funding working capital where commercial funding sources such as overdrafts and invoice finance cannot provide the full requirement,
- Increasing sales, new contracts.
- Purchase of stock
What information is required?
The following information is required as part of the application process:
- Business Plan
- Annual Accounts (most recent and certified by an independent accountant)
- Management Accounts (required if Annual Accounts are more than three months old)
- Financial Projections (P&L, Balance Sheet and Cash Flow for one full year)
- Trade References (email addresses for two trade referees)
- Experian / Equifax Credit Check
Are there types of businesses who are not supported by the Growth Fund?
In Fife, Marissa Yassen can advise or someone from the Scottish EDGE team can advise on the types of businesses not supported by the Fund.
How will I be advised of the loan application decision?
All loan applications are decided by an Appraisal Panel. You will be asked to make a presentation to the Panel on your business and how you will take it forward.
You will be advised of the Panel’s decision on the day and of any conditions that must be met before the funding can be drawn down.
For initial enquiries, please contact Marissa Yassen on 01592 858334 or email Marissa.Yassen@princes-trust.org.uk