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About the NAB’s Microenterprise Loan
One of the greatest barriers faced by young entrepreneurs in today’s economy is the inability to secure the support and the financial assistance required when starting or growing a small business. In particular, financial institutions have found it difficult to provide business loans to young people who are unable to offer assets security or have been unable to establish a long financial track record.
ENYA, with the support of the National Australia Bank (NAB) is committed to assisting young people overcome these barriers and is proud to introduce the NAB Microenterprise Loan Program to young people. This innovative Program makes finance, business training and ongoing support available to young people to establish or expand a business.
Specifically ENYA and the NAB’s Microenterprise Loans have been developed to support young entrepreneurs by offering:
• A loan of between $500 and $20 000 to young people for the purpose of starting or growing a business.
• A low interest rate is fixed for the term of the loan. The interest rate will be confirmed at the time of the application.
• Access to wide network of support services including a toll free advice line.
• Access to the Youth and Enterprise Legal Centre, another of ENYA’ s initiatives, which can help you with many of the legal matters associated with starting a business on a reduced-fee basis.
The application process is largely web based. To supplement the web-based nature of the Young Entrepreneurs Program, ENYA is able to support you to:
• develop your business plan;
• provide advice and guidance on all your business questions;
• act as a 'sounding board' to help consolidate your business idea; and
• identify any support you may need during the first 12 months of your new business.
To Apply
To be eligible to apply for a loan, each applicant will need to satisfy the following requirements:
• Must be between 18 and 30 years of age.
• Must be committed to starting or expanding a business.
• Must not have had any bankruptcies in the last 7 years.
• Must demonstrate sound business planning skills, or the potential to develop these skills.
• Be highly motivated and committed to establishing a sustainable business.
• Must be willing to work with a mentor for at least 12 months.
NAB: Applicants are not required to own any property to apply for a Microenterprise Loan
Below is a quick overview of the application process, after this will be a more detailed application process should you wish to apply.
• Complete application form, business plan, checklist and (if you have trouble completing any of these forms, contact ENYA and we will assist you)
• Send the form by either Post, email or fax to ENYA
• A volunteer consultant will process your application and contact you for any additional information we may need.
• Once your application is finalised, ENYA will send the application to NAB.
• NAB will assign application to a banker in your area who will contact you within 7-10 business days to arrange a loan assessment interview.
• Once interview has taken place NAB will contact you regularly to keep you up to date on the status and if it has been approved. If you have any questions regarding the loan, please contact your banker, however, for ongoing support please contact ENYA.
If you are interested and would like to apply for the NAB Microenterprise Loan, please follow the 3 steps below:
The Application Process
PART 1. Download forms from website
Each applicant must start by downloading the following three forms from the website. To download the forms use these links below or on the left hand side menu:
NAB Microenterprise loan application form
Business plan
Loan Checklist
The NAB Microenterprise loan application Form:
The application form requires contact and employment details, personal financial details, business details (for existing businesses only). It also requires the applicant to grant authority for access to their credit history.
The Business Plan:
The Business Plan template provided for applicants to complete includes the following information:
• Business Overview
• SWOT Analysis
• Marketing Plan
• Market Analysis
• Competitors Analysis
• Pricing Policy
• Promotions Strategy
• Sales Forecast
• Establishment Costs Forecast
• Financial Analysis – cash flow and income projection
The Business Plan has been included as part of the application process in order to give you a realistic picture of the issues that need to be considered in starting or growing a successful business, no matter how big or small. Therefore, we encourage all applicants to take the time to consider each element in some detail when completing the forms.
The Loan Checklist:
The Loan Checklist is helpful to ensure that the loan can be assessed promptly. Please make sure that you have completed every item on the checklist when submitting documents at this stage of the application process.
If you have any trouble completing any of these forms, please contact us and we will help you.
Send the completed application form, business plan and loan checklist to one of the following:
Enterprise Network for Young Australians
Microenterprise Loan
PO BOX Q361
QVB, NSW, 1230
Or by email
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or by fax 1300 763 285.
This application will then be considered by ENYA and the applicant will be contacted within 10 business days to receive either an initial pre-approval or details why it has not been pre-approved.
Please note that all information provided will be treated as strictly confidential.
PART 2. NAB Loan Assessment Interview
Once ENYA has received all documentation and we have advised the applicant that they are pre-approved, their application, along with a letter of support from ENYA, will be sent to a NAB nominated banker within 7-10 business days to arrange a Loan Assessment Interview.
The Loan Assessment Interview will:
▪ assess the strengths of the applicant’s business plan and financial projects;
▪ verify the applicant is able to take on the repayment needs of the loan;
▪ assess applicants credit history;
▪ undertake company search to confirm ownership and structure, if an existing business.
Once your interview with your local banker has taken place, your NAB banker will contact you regularly to keep you up to date on the status and if it has been approved.
PART 3. Loan Approval
Payment of the loan to the loan recipient will be made in the form of a credit card with a limit up to the amount of their loan and they will be given 3 months to buy the items agreed to under the terms of the loan. Loan recipients can then pay off the amount of the loan within a maximum 3 year period.
Loan Rounds
Applications are welcome at any time during the year and loan applications should be decided within one month of submitting the application provided all documentation requested is supplied and the Loan Assessment Interview is arranged in a timely manner. NAB will let you know if your loan application is approved and NAB will then advise ENYA.
Further Assistance
If you require any further information about the Microenterprise loan or assistance in completing the Loan Application, Business Plan or Loan Checklist please feel free to contact ENYA toll free on 1300 136 921 and select OPTION 2 or email us at
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ENYA can send you all three forms by mail upon request if you do not have access to the internet to download these forms yourself.
Accreditation
ENYA was selected by Youth Business International as their Australian Pilot project, the Microfinance Fund. Youth Business International (YBI) is a unit of The Prince of Wales International Business Leaders Forum that helps disadvantaged young people realise their ambitions to become entrepreneurs.
YBI brings together people in the corporate sector, civil society and government, who make their skills, expertise and facilities available on young people’s behalf to provide access to finance, business mentoring and support to young entrepreneurs during the start-up and early development of their businesses.
The pilot project, the Microfinance Fund and was successfully run for 18 months. Following on from the success of this project ENYA is now working closely with NAB to offer it new Microenterprise Loan. ENYA’s innovative partnership with the National Australia Bank ensures young people are supported with their business aspirations through assisting them to overcome barriers to becoming entrepreneurs.
For more information about the National Australia Bank generally visit:
http://www.national.com.au/About_Us |
