Budding entrepreneurs who struggle to get a bank loan, could receive help from the Northamptonshire Community Foundation.
The grant-giving charity has teamed up with the Fredericks Foundation to offer loans of up to £10,000 for people wanting to start up their own businesses in the county.
Fredericks Northamptonshire, which launched in January, is part of the Fredericks Foundation, which was founded in 2001 to loan funds to people who wanted to start up a new business, but could not get a bank loan.
Richard Lindley, client manager for Fredericks Northamptonshire, said: “We want to help people to set up in business or sometimes grow their business. This is something we want to do, particularly at the moment with the various problems the banks are experiencing.”
The money for the loans scheme is being raised by Northamptonshire Community Foundation along with some Government funding.
Applicants can borrow up to £10,000, but sometimes up to £20,000 is given out to established businesses who want to expand.
Mr Lindley said: “If businesses are looking to expand we can sometimes help, especially if it will create job opportunities. The idea is to help people who have enthusiasm and ideas, but who who can’t raise the money to achieve their objective.
“The business is good for them and also good for the community as instead of receiving benefits, they would then be paying taxes. The scheme creates jobs for people. We make sure we think businesses will work before we give the money.”
Fredericks Northamptonshire has already held its first grants-lending panel and agreed to fund a Northampton woman’s business idea to manufacture and sell salt and gluten free herbs and spices.
The lending panel is made up of experienced volunteers, including bankers and accountants, and they will meet again on May 9.
Mr Lindley said he hopes four more people will be chosen at the next panel to receive loans to help them set up a business in the county.