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Charity Alters Terms to Make Borrowing Easier

Charity Alters Terms to Make Borrowing Easier

The Sir Thomas White Loan Charity, based at Friars Mill (pictured) in Leicester, has adjusted a number of its terms and conditions so as to make it easier for applicants to obtain one of the Charity’s interest-free business and education loans – in some cases approving selected applicants unable to meet the guarantor requirements in full.

In addition, applicants may borrow an improved sum in order to support business start-up or development, or post-graduate study.

One of the county’s oldest charities, named after one of Leicester’s most generous benefactors, Sir Thomas White – who features on the city’s iconic clock tower, The Sir Thomas White Loan Charity provides loans to people aged between 18 and 35 to establish new businesses within Leicestershire and Rutland, in addition to smaller sums to support the cost of continuing studies for a post-graduate qualification.

Business loan applicants may now borrow up to £20,000 to assist with either a start-up project or to take a developing business to the next level. This move is a £5,000 increase on the total sum a business loan applicant could previously apply for.

Alongside this, the Charity has increased the total sum an education borrower may take out as an interest-free loan, with the new £10,000 figure a £4,000 increase on the previous maximum of £6,000.
Meanwhile, applicants will be able to benefit from improved guarantor requirements, with two guarantors required for loans totalling £10,000 – each guaranteeing a maximum of £5,000. Three may be required for loans totalling £20,000 – each guaranteeing a maximum of £7,500 each. Alternatively, two guarantors may cover a maximum of £10,000 each for loans totalling £20,000.

However, one of the most significant moves by the Charity is the introduction of a new category of business loans. Any applicants unable to meet guarantor criteria but who impress the Charity with their business plan will be invited to apply for a loan, with up to five such applications each year qualifying for a Special Loan. A very limited number of Special Loans will be delivered on a competitive basis.

Whilst the terms of these loans will remain exactly the same, they will see the Charity itself act as guarantor in what is an innovative new measure taken by The Sir Thomas White Loan Charity to assist budding entrepreneurs in Leicestershire.

David Howard, Chair of Trustees at The Sir Thomas White Loan Charity, said: “We understand that the financial landscape is changing for many and we want to ensure that the charitable loans available to help business start-up and development are as accessible as they possibly can be in that changing landscape.

“For many businesses, a sum greater than the £15,000 business loan figure was required and we’re pleased to be able to increase this to £20,000, just as we’re happy to increase the education loan total by £4,000.

“The sum we’ve delivered in business loans is below what we would like to approve. Whatever a person’s business idea, I would encourage them to get in touch with The Sir Thomas White Loan Charity and find out more about the support we have available. No bank will be able to provide a business loan on the terms we do, especially providing borrowers with a three-year break before equal repayments start.”

The Sir Thomas White Loan Charity hosts four rounds of quarterly interviews with prospective borrowers each year. In the first instance, applicants should request an application pack by emailing info@stwcharity.co.uk

For more information, please call 0116 204 6620.