Small Business Loans Samuel Wilson s Loan Trust

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1 Small Business Loans Samuel Wilson s Loan Trust

2 Develop Grow Prosper Samuel Wilson s Loan Trust is a charitable organisation, operated by The City of London Corporation, which grants loans to younger people, for establishing and developing new businesses. What can we offer? The purpose of the Trust is to benefit people under 40 years old suffering financial hardship or other disadvantage, by granting loans to: individuals, partnerships or limited companies, recently set up or about to engage in any trade, manufacture, business or profession. We offer loans of up to 50,000 for establishing and developing new businesses, at attractive rates of interest. Loans must be repaid within 5 years, although the precise interest rate, amount and period of the loan will be considered on an individual basis, determined at the discretion of the Trustees. One or more guarantors will be required to guarantee repayment of the loan including interest due.

3 Who Can Apply? There are a number of simple conditions, which must be followed and met. To count as qualifying individuals, applicants must be: Under 40 years of age, Have recently set up, or be about to set up in a trade, manufacture, business or profession Operate in the area of Greater London or the counties of Buckinghamshire, Essex, Hertfordshire, Kent, Surrey, East Sussex or West Sussex. Not be a publican, a distiller or vendor of distilled liquors (unless the sale of alcohol is incidental to the main activity of the business). Loans may only be made to individuals or Partnerships and Limited Companies managed by qualifying individuals, and may not be advanced to, or for the use of, Public Limited Companies. Applicants must be able to demonstrate how a loan from the Trust would make a difference to the success of their business.

4 What Next? We aim to make the process as easy as possible We will provide support and guidance, at each step How do I apply? Applicants must fulfil the simple conditions and must supply the details requested on the application form. Subject to satisfactory references for applicants and guarantors and a suitable business plan, applications will be considered by the Trustees on a periodic basis (normally monthly), which may mean a short delay in the decision on the offer of a loan. If agreed, the applicant and guarantors will usually be required to attend in person, to sign the loan agreement. When I was just a fresh-out-of-the-college musician, I was trying to raise the money for a very good cello I so badly needed. It has been a (professional) life-saver which has put me on the career path of my dreams. Today, two solo CDs later and after many successful performances, I cannot express how grateful I am to the Samuel Wilson's Trust.

5 What security is required? One or more guarantors will be required to guarantee repayment of the loan including interest due. As signatories to the loan agreement, the borrower and their guarantor(s) will be jointly and severally responsible; this means that, if the borrower should default, the guarantor(s) will be liable to repay all of the outstanding debt. Each Guarantor themselves are required to provide a suitable reference to demonstrate that they have sufficient means to be able to repay in full if called upon Go Further Faster

6 Take up one idea. Make that one idea your life - think of it, dream of it, live on that idea. Let the brain, muscles, nerves, every part of your body, be full of that idea, and just leave every other idea alone. This is the way to success. Swami Vivekananda. Access to investment is a major source of business growth.. The Loan The Trustees will advance money for start-up costs and working capital of a business lend money for capital purchases such as vehicles, tools and equipment The Trustees will not generally give loans for purchase or rent of a property or for personal living expenses; advance money to repay other loans; or make loans in conjunction with any hire-purchase agreement. A business plan will be required which must show how any loan from the Trust would affect the success of the business. In addition, if trading has already started, sets of recent accounts will also be required. If loans are granted for the acquisition of vehicles or other assets, evidence of purchase will be required. (Contd.)

7 Repayment Terms In the first year of the loan, interest will generally be charged at 1% above the a v e r a g e 5 year Gilt F l a t Yield prevailing at the time the loan offer is made and thereafter at 2% above this rate per annum. The maximum loan permitted is 50,000 and the maximum repayment term is 5 years, although the precise interest rate, amount and period of the loan will depend business case, at the discretion of the Trustees. on the specific Repayment is required by monthly instalments paid through a Bankers Standing Order Mandate on the first day of each month. It is usually by equal amounts over the period of the loan. Interest is calculated on the reducing balance and is charged at half yearly intervals. About Samuel Wilson s Loan Trust Samuel Wilson was a Quaker who lived in Hatton Garden in the 18 th Century. He was a widower when he died and had no surviving children. In his Will, dated 27th October 1766, he left the sum of 20,000 to form the basis of the Trust which was established in The Trust is registered as a Charity and since 1868 its administration has been governed by a Scheme of the Charity Commissioners. The Trust is operated by the City of London Corporation and its Trustees are Five Aldermen and the Chamberlain of the City of London. I would like to thank everyone at the Trust for the help they gave me in buying my taxi. The low interest rate, the five years I was allowed to pay back the loan helped me more than can be explained here. I speak very highly to anyone in my trade about the Trust and have frequently recommended you.

8 For Further Information The loan application process is managed on behalf of the Trust by GLE onelondon. If you would like any further information, or an application form, please contact GLE onelondon direct and mention the Samuel Wilson s Loan Trust: Web address: [email protected] (please quote ref SWLT in the subject heading) Application / registration: GLE onelondon telephone number: Board of Trustees: Alderman Jeffrey Evans, Alderman Peter Estlin, Alderman John Garbutt, Alderman Gordon Haines (Chairman), Alderman Sir Paul Judge; The Chamberlain of London. Samuel Wilson s Loan Trust is a charitable organisation operated by the City of London Corporation and registered with the Charity Commission. (Registered Charity Number: )