BY Sam Walker | Monday 4 March 2024
Businesses in Hull can now apply for loans from Hull City Council thanks to the Levelling Up Partnership (LUP).
In July 2023, Cabinet agreed to accept up to £20m of LUP funding for several predefined projects.
One of these projects, with a capital allocation of £1m, was the creation of a small business loan scheme.
The Business Loan Scheme will be aimed at small and medium sized businesses in Hull which have capital spend projects only – ie plant and machinery, land and buildings.
The scheme will focus on what is known as syndicated lending, offering loans alongside other lenders.
Loans will generally range between £60,000 - 150,000, with loan terms between three and seven years.
Under the Business Loan Scheme, the LUP grant is not repayable, meaning funds will be available to support more businesses in the future on a ‘revolving basis’ following successful repayment of the loans, further facilitating business and economic growth in the city.
Cllr Paul Drake-Davis, the council’s portfolio holder for regeneration, said: “It’s great that the council is now able to offer these loans to small and medium sized businesses in Hull.
“The council is committed to supporting businesses of all sizes and this is another example of that, using the funding received from the government last year.
“It’s important that the Business Loan Scheme is managed carefully and diligently so it can grow and continue to provide financial support to local companies for many years to come.”
The initial Business Loan Scheme is open for applications until March 2025.
To discuss a potential request for loan finance, please email investhull@hullcc.gov.uk.
