cancel
Showing results for 
Search instead for 
Did you mean: 

Youth Enterprise Loan - An update since our 2012 Budget success.

Not applicable

Youth Enterprise Loan - An update since our 2012 Budget success.

In the March 2012 Budget, George Osborne announced the creation of a £10m Youth Enterprise Loan fund. Some more details have since been announced.



Virgin Media Pioneers and the Youth Enterprise Loan.


We were delighted when a Virgin Media Pioneers campaign led to the creation of the Youth Enterprise Loans Fund. To catch up on how that campaign ran visit http://www.virginmediapioneers.com/youth-investment-fund

We are now in discussions with stakeholders about how the Youth Enterprise Loan scheme will be distributed and supported. We hope to continue to pay an active role to ensure the scheme lives up to the original idea that your Pioneers community put forward and championed. There's more information about the Fund below and as soon as more specifics on our role are defined, we'll update you again.

We'll be celebrating all of our success so far on the 23rd of May in Soho, London. If you're interested in attending, we'd love to see you - please e-mail your request to pioneers@virginmedia.co.uk along with a link to your Pioneers profile.

Further information that's been announced:


What's the aim of the £10m fund?


The Youth Enterprise Loan is designed to test whether there is demand for 'soft' loans to enable young people to start a new enterprise

The fund is a result of lobbying and research by Virgin Media Pioneers in particular. It has been deemed "an exciting concept as it will provide the means to take a nice idea that needs to be tested in the market through to a business plan and then on to becoming a real
business"- Mark Prisk (Minister for Business and Enterprise).

Who's eligible?


Anyone aged 18-24 can apply for a Youth Enterprise Loan regardless of background, education or employment status or whether or not you are eligible for a business loan from a bank. This opportunity is not exclusively for the young unemployed or disadvantaged.

What are the benefits?


This initial 'pilot' with its £10m fund is designed to test whether there is demand for loan finance of this type (a key point which is frequently repeated by BIS). The assumption is that Loans will average £2500 and be repaid over a fixed period at a suggested interest rate of RPI + 3%. Those benefiting from a loan will not need to prove that they have collateral to support the investment or that they are 'bankable' in the usual sense. Repayment holidays, the length of the repayment term and the repayment terms are all subject to discussion.

Background:


In practice, the whole proposal looks very much like The Prince's Trust's Business programme developed by some of the same people (e.g Lord Young and Sir William Castell) in the '80s and 90s. Recently this has shrunk as Government funding evaporated and The Prince's Trust focused its work on the most disadvantaged young people (who inevitably find business starts very challenging).

If demand is proved and business training and mentoring can be made available to all those who request it (estimated to be three times more numerous than the eventual loan recipients) then larger amounts (Lord Young speaks of an additional £9m in 2012/13, £30m in 2013/14 and £40m
thereafter) will be made available.

Government (BIS) intends to provide capital for onward lending and funding for administration costs. A 10% management fee (50% in advance, 50% performance based) is suggested.

The Government will also provide a 'Fund Manager' to provide support for overall loan administration and oversee distribution and collection of funds. They will also develop a Brand (although this is more likely to be the simple name- 'Enterprise Loans" of this government programme.

If you would like to find out more about the Youth Enterprise Loan fund, please email: pioneers@virginmedia.co.uk