Hull City Council Launches £1M Loan Scheme for SMEs, Fuelling Local Economic Growth

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Launch of New Business Loan Scheme to Support SMEs in Hull

Hull City Council Unveils New Business Loan Scheme

The Reader Wall’s economic correspondent has learnt that Hull City Council has initiated a maiden Business Loan Scheme. This scheme presents a generous £1m fund specifically to aid small and medium-sized businesses (SMEs) that operate within Hull, particularly those earmarked for capital expenditure projects.

Syndicated Lending at the Forefront

The council seems to place great emphasis on syndicated lending with this new scheme. Our source reveals that the loans on offer will be coupled with contributions from other undisclosed lenders. The loan amounts will reportedly range from £60,000 to a high of £150,000, with the loan duration spanning three to seven years.

The Unique LUP Grant

An exciting feature that poses a significant benefit to businesses is the non-repayable Loan Underwriting Pool (LUP) grant. Stated by the council, the funds loaned out can be recycled habitually to help more businesses in the future once successful repayments have been made by initial benefactors.

An Initiative Steered for Growth

Cllr Paul Drake-Davis is the key figure behind the scheme’s operations. The initiative seeks to spur on business development and expand economic growth within the city’s boundaries.

Government-backed Funding

The council made it clear that their dedication to support local businesses has been emboldened by this scheme, which was borne out of government funding granted last year.

A Long-term Commitment to Aid Local Businesses

  • The loan scheme is set to run until March 2025, indicating a sustained commitment from the council to bolster local commerce.

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