Following in the footsteps of businesses such as Yippee Entertainment, The Floow, Hebe Media, DESQ, MyKnowledgeMap, PureNet, Stashmetrics, Skylab, Flix Facilities and Carbon Digital, Creative England’s Kate Adam advises on how you can follow in these creative companies’ footsteps and get yourself a Creative England Business Loan.
Who are the loans for?
The loans are ideal for creative digital companies who are looking to expand, grow, or launch a new product. They must be based in the English regions outside of London and the South East, and have the available finance to be able to match fund their application.
We also ask that companies who apply already have some market traction and we will ask this to be demonstrated through turnover, for example.
What is match funding and why do I need it to apply?
Match funding is part of the Regional Growth Fund (RGF) application process, and shows a commitment from the applicant to either further investing in growth themselves or from another source of finance (other than Creative England).
Companies must have match funding available that is equivalent to the amount they are applying for from Creative England. For example, if a company is applying for a £100,000 loan they must be able to prove that they have £100,000 of their own money in the bank to finance the project.
Match funding can come from private investment, company revenue being re-invested, or through another loan or source of finance. However, money already spent on a project prior to application is not an eligible form of match funding.
How much can I apply for, and what are the repayments like?
You can apply for anything from £50,000 to £200,000. The loan will need to be repaid over three years, with low repayments over the first 12 months.
Why are only particular regions eligible?
The funding for our Creative England business loans comes through the Regional Growth Fund (RGF) who have identified key regions for business growth. Due to this, we are able to offer the funds to regions outside of London including:
- North East
- North West
- Yorkshire & The Humber
- East Midlands
- West Midlands
- South West
Unfortunately at this time we are not able to offer a business loan to companies based in London or the South East.
Are there any other specific requirements for applications?
One of the main criteria is planning to create and safeguard jobs that would otherwise have been lost if not for the Creative England business loan.
As a rule of thumb, we recommend that for every £8,000 of loan requested that one job will be created or safeguarded. So, for example, if a company requests a loan of £80k we would expect at least 10 jobs to be created or safeguarded.
Unfortunately freelance positions cannot count in the allocation, the positions created or safeguarded need to be employed and on the company pay roll.
For any more questions on the Creative England Business Loans you can email Kate on: firstname.lastname@example.org.
The deadline for applications for this round of Creative England Business Loans is midday on Friday February 6th.
You can read the full application guidelines and apply for a Creative England business loan here.
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