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: 5.99% p.a. fixed for the term of the loan. ▪ Access to wide network of support services including a toll free advice line, an on-line forum for young entrepreneurs and free access to business information. ▪ 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 opportunity for skills development in relation to many of legal matters they face in business through the free Law Sense workshops and its comprehensive program materials.
To Apply
To be eligible to apply for a loan, each applicant will need to satisfy the following requirements: ▪ Must be between 18 and 29 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.
NB Applicants are not required to own any property to apply for a Microenterprise Loan
The Application Process
1. Application Form
Each applicant must start by completing and submitting the Application Form available to download from our website (please see below). This application will then be considered and the applicant will be contacted within 7 days to receive either an initial pre-approval or rejection.
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.
Please download the application form fill in the details and post it to:
Enterprise Network for Young Australians Microenterprise Loan PO Box 100 BLAKEHURST NSW 2221
2. Business Plan and Loan Checklist
Where applicant receives an initial pre-approval the grant of the loan will be subject to the lodgment of a Microenterprise Business Plan and Loan Checklist which is also available to download from our website (please see below).
Where applicant receives an initial pre-approval the grant of the loan will be subject to the lodgment of a Microenterprise Business Plan and Loan Checklist which is also available to download from our website (please see below).
The Business Plan template provided for applicants to complete includes the following information:
▪ Business Overview ▪ SWOT Analysis ▪ Marketing Plan o Market Analysis o Competitors Analysis. o Pricing Policy. o 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 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.
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.
Submitting Business Plan and Checklist
Once application form has been submitted and you have received preliminary approval then complete and submit the Microenterprise Business Plan, in full, and the Loan Checklist with any paperwork requested and please return to the following address:
Enterprise Network for Young Australians Micro Finance Fund PO Box 100 Blakehurst, NSW 2221
Once application form has been submitted and you have received preliminary approval then complete and submit the Microenterprise Business Plan, in full, and the Loan Checklist with any paperwork requested and please return to the following address:
Please note that all information provided will be treated as strictly confidential.
3. Loan Assessment Interview
Once ENYA has received all documentation including Microenterprise Business Plan we will advise the applicant of the contact details of a NAB nominated banker to arrange a Loan Assessment Interview. It will then be up to the applicant to contact the NAB nominated banker and arrange a suitable day and time for the interview. The Loan Assessment Interview will:
Once ENYA has received all documentation including Microenterprise Business Plan we will advise the applicant of the contact details of a NAB nominated banker to arrange a Loan Assessment Interview. It will then be up to the applicant to contact the NAB nominated banker and arrange a suitable day and time for the 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.
4. Loan Approval
Where the applicant’s loan is approved ENYA will arrange for the successful applicant to complete a loan agreement and ensure that applicants are fully aware of the terms and conditions of the loan via an information session, which would normally occur over the phone.
Where the applicant’s loan is approved ENYA will arrange for the successful applicant to complete a loan agreement and ensure that applicants are fully aware of the terms and conditions of the loan via an information session, which would normally occur over the phone.
Payment of the loan to the loan recipient will be made via 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.
NB: It is a mandatory requirement that participants have a NAB account from which loan repayments can be Direct Debited.
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. Once a decision has been made about the application, each applicant will be notified by ENYA of the result.
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. Once a decision has been made about the application, each applicant will be notified by ENYA of the result.
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 or email us at
An application kit is also available by mail if requested.
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.
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.
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 its new Microenterprise Loan to help overcome the barriers to becoming entrepreneurs.
