3b COMMUNITY DEVELOPMENT FINANCE INSTITUTION (CDFI)
3b CDFI is a vehicle for accessing finance and support for enterprises within disadvantaged communities. The 3b Loan Fund is available for start-up and existing businesses, with quantifiable growth potential and the can be used to help them lever funds from other sources to meet Capital Expenditure for start-up, relocation, refurbishment, acquisition of capital equipment, commercial premises and other expansion proposals etc.
The Loan is not meant to meet cash flow difficulties or support adverse working capital, or retrospective funding.
Target Start-up and existing businesses located in Birmingham and the Black Country (Wolverhampton, Walsall, Sandwell and Dudley).
Maximum Amount £20,000 (start-ups to a maximum of £15,000). The amount is subject to the discretion of the Panel.
Interest 6% above Bank of England base rate, fixed throughout the duration of the loan.
Terms Repayments should be made over a maximum period of three (3) years in the case of loans up to £5000. In the case of loans over £5000 the following repayment periods will apply:
£5001- £7500
4 years
£7501 - £10000
5 years
£10001 - £15000
6 years
£15001 and over
7 years
Monitoring Monthly Management Accounts must be submitted in the first twelve months of the loan or as deemed appropriate. Company trading records should be made available to 3b on request during the term of the loan.
Criteria for 3b CDFI Funding
1. Business Plan to Birmingham Plan Standard 2. An acknowledgement of support for the loan application 3. Capital costs 4. Commitment in the form of Financial input 5. Business Bank Account in Operation 6. Credit Check History 7. Personal Guarantee and Security (if applicable) to be given as deemed appropriate. In the case of loans where security is applicable, there will be no loan until security is in place.
For Further Details Please Contact Oladimeji “Olajaf” Adeyemi
