the Revolving Loan Fund

Change the way
you work...

LCCDA's revolving loan fund

Loan finance for co-ops and democratic businesses based in Leicester City

information for borrowers

aims of the loan fund

To support the development of viable democratically owned and controlled businesses in the local economy by the provision of loan finance and, in certain circumstances, overdraft guarantees.
To preserve the real value of the fund for the benefit of future democratic businesses.

key terms and benefits to borrowers

You can borrow up to £10,000 per co-op.

Flexible repayment periods (normally between one and five years). Requests for capital "repayment holidays" considered sympathetically.

Competitive fixed rate loans. No hidden costs or additional charges e.g. arrangement fees.

Free advice and help in financial management throughout the term of your loan.

Your application will be considered sympathetically by people who understand co-ops. Our Awards Committee includes two members of local co-ops.

who can apply?

Existing co-ops and democratic businesses (including Co-operative Partnerships) based in the City of Leicester. Loan application will be considered for capital or working capital to support the expansion of your business.

Applications for overdraft guarantees (up to £5,000 per co-op) may be considered but only from established co-ops for working capital requirements.

We may also be able to act as an emergency lender to established democratic businesses if you are experiencing short term financial problems provided that you have a successful trading record and good future prospects.

New democratic businesses based in Leicester arising from a conversion or employee buy-out of an existing business may apply to the fund.

We can lend to new-start co-ops and democratic businesses based in Leicester – but start-up capital is usually only possible if you can show that the business is viable and you have been unable to raise finance from other sources.

how to apply

Contact John Rugman at the CDA for an initial discussion about whether the CDA loan fund is appropriate to your needs. At this stage we can give you full details of how to apply; and when and how your application will be considered.The CDA may also be able to advise and help in preparing your application and business plan (see below)application must usually be by means of a business plan.

This should include:

The amount of finance required and the purpose of the loan

A summary of your business development to date and future development plans

Information on key people, and your skills, qualifications, job roles and management structure.

Assessment of your market and marketing strategy

Recent audited and/or management accounts

One year cashflow projection

Projected accounts (profit & loss and balance sheets) for at least one year and up to three years.

other terms and conditions

In general loans should be matched £ for £ by other sources of finance.

We usually seek security for loans in the form of a debenture (charge) on your co-op’s assets. We do not usually seek additional personal guarantees. Full details will be given when you apply.

We monitor all loans – usually by quarterly reports to the Awards Committee. You will be asked to send financial monitoring information to the CDA every three months. Our assessment reports will be sent to you, and we will be pleased to discuss them with you, and to advise and help if we can. Full details of monitoring will be discussed when you apply.

further information

Please contact John Rugman at the CDA for further information about the CDA Loan Fund – or if you would like advice about other sources of finance.We have details at the CDA about various other lenders including local grant / loan schemes, ethical loan funds and ICOF (the national co-op loan fund). We also have books and directories which may be helpful and which you can arrange to borrow or consult at the CDA.


Change the way you work...	LCCDA's revolving loan fund
Site design by Henry's House	Loan finance for co-ops and democratic businesses based in Leicester City information for borrowers aims of the loan fund To support the development of viable democratically owned and controlled businesses in the local economy by the provision of loan finance and, in certain circumstances, overdraft guarantees. To preserve the real value of the fund for the benefit of future democratic businesses. key terms and benefits to borrowers You can borrow up to £10,000 per co-op. Flexible repayment periods (normally between one and five years). Requests for capital "repayment holidays" considered sympathetically. Competitive fixed rate loans. No hidden costs or additional charges e.g. arrangement fees. Free advice and help in financial management throughout the term of your loan. Your application will be considered sympathetically by people who understand co-ops. Our Awards Committee includes two members of local co-ops. who can apply? Existing co-ops and democratic businesses (including Co-operative Partnerships) based in the City of Leicester. Loan application will be considered for capital or working capital to support the expansion of your business. Applications for overdraft guarantees (up to £5,000 per co-op) may be considered but only from established co-ops for working capital requirements. We may also be able to act as an emergency lender to established democratic businesses if you are experiencing short term financial problems provided that you have a successful trading record and good future prospects. New democratic businesses based in Leicester arising from a conversion or employee buy-out of an existing business may apply to the fund. We can lend to new-start co-ops and democratic businesses based in Leicester – but start-up capital is usually only possible if you can show that the business is viable and you have been unable to raise finance from other sources. how to apply Contact John Rugman at the CDA for an initial discussion about whether the CDA loan fund is appropriate to your needs. At this stage we can give you full details of how to apply; and when and how your application will be considered.The CDA may also be able to advise and help in preparing your application and business plan (see below)application must usually be by means of a business plan. This should include: The amount of finance required and the purpose of the loan A summary of your business development to date and future development plans Information on key people, and your skills, qualifications, job roles and management structure. Assessment of your market and marketing strategy Recent audited and/or management accounts One year cashflow projection Projected accounts (profit & loss and balance sheets) for at least one year and up to three years. other terms and conditions In general loans should be matched £ for £ by other sources of finance. We usually seek security for loans in the form of a debenture (charge) on your co-op’s assets. We do not usually seek additional personal guarantees. Full details will be given when you apply. We monitor all loans – usually by quarterly reports to the Awards Committee. You will be asked to send financial monitoring information to the CDA every three months. Our assessment reports will be sent to you, and we will be pleased to discuss them with you, and to advise and help if we can. Full details of monitoring will be discussed when you apply. further information Please contact John Rugman at the CDA for further information about the CDA Loan Fund – or if you would like advice about other sources of finance.We have details at the CDA about various other lenders including local grant / loan schemes, ethical loan funds and ICOF (the national co-op loan fund). We also have books and directories which may be helpful and which you can arrange to borrow or consult at the CDA.