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Portsmouth Small Business Loan

Last updated: 14 July 2010 15:20 UK

Overview

In January 2009, Portsmouth City Council established the Portsmouth Revolving Loan Fund (PRLF). This is part of a wider package of small business support measures to help Portsmouth based companies grow and develop during the current economic downturn. The Council has committed £250,000 to the PRLF and is now offering the Portsmouth Small Business Loan (PSB loan) to small businesses in the city seeking to expand.

The key points of the PSB loan are:

maximum loan available to eligible businesses is £10,000
PSB loan amount must not exceed one-third of total amount and match funding from the bank or other financial institution plus the business is required
a fixed rate of interest, at a below market rate, will be applied to the loan (Public Works Loan Board Annuity rate)
loan period will be for a maximum of three years
loan can be repaid in full at anytime without interest penalty
up to six month's payment holiday can be taken within the period of the loan
a personal guarantee will be required for the PSB loan

In introducing the PSB loan, we hope that this will help small businesses access the funding required to expand by providing match funding to that available within the business and provided by its bank or other commercial funding sources. As a result this will contribute towards increasing business profitability, safeguarding and creating jobs that will ultimately lead to local economic growth.

Eligibility criteria

The following criteria will be applied to the PSB loan:

businesses must be based in Portsmouth local authority area (Post Code: PO1 - PO6)
businesses must comply with the EU definition of a small business (less than 50 employees, turnover not exceeding 10m Euros, and balance sheet no more than 10m Euros)
businesses must be able to demonstrate their potential for growth and increasing Gross Value Added (GVA) through increased turnover and profits plus jobs created and safeguarded
proof of bank or other financial institution lending equal to, or greater, than the PSB loan amount in place
proof of personal funding equal to, or greater, than the PSB loan in place
in the case of sole traders, partnerships or Limited Companies there must be a personal guarantee from the company directors or owner managers.

Assessment process

An application form will need to be completed by the business and in addition to confirming the above criteria it will need to include evidence of business performance over the last two years.

Business Link, our primary business support partner, will assist with the completion of application forms, but the decision to advance the loan will be made by the Council. Once a loan has been awarded, Business Link will also be undertaking six monthly reviews with the business for at least the duration of the loan.

Application procedure

In order to submit an application, applicants are required to have a pre-assessment by Business Link. Business Link Advisers will assess applicants’ suitability for the PSB loan and help complete the application forms. The application form and the detailed guidance are available to download from the Associated Documents below. To arrange a meeting with Business Link please contact them on 0845 600 9 006.

Completed applications, together with all relevant supporting documents, should be sent to Portsmouth City Council. For fully completed applications, a final decision will be made within 5 working days. Any missing information will cause a delay in the decision-making, because it will be returned.

Further information

For more details on the PSB loan and an initial discussion on eligibility please contact our Business Services and Development Team's Business Support Manager, Ian Bridges, on 023 9284 1074 or email business@portsmouthcc.gov.uk.

Further information on other potential grants and loans can be found on our grants and financial assistance page.