Small Loan Fund

The Small Loan Fund provides unsecured loans from £10,000 to £100,000 to support the development and growth of all types of business.


  • For Businesses Which are Trading and Generating Revenues
  • Must Be Able to Make Fixed Monthly Payments
  • Funding to Assist Business Development and Growth

Don't fit within the criteria?

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The Small Loan Fund is managed by NEL Fund Managers, which has invested in over 750 North East businesses since 1989. As a long-established firm, NEL is well networked in the region and has supported the development and growth of businesses across all sectors including manufacturing, engineering, information technologies and the service sector.

Smaller businesses are the bedrock of the North East economy and this fund aims to be an accessible source of finance for them, providing loans on a relatively swift and straight-forward basis. A call or meeting with a member of the team will establish whether your company is eligible and suitable for a loan from the fund. If it is, NEL can provide guidance on the information which should be included in your application.

Loans can be provided for most purposes, including taking-on or fitting-out new premises, acquiring stock or machinery or recruiting new staff. Loans are repayable over an agreed term, which is usually between 3 and 5 years. Interest rates vary but are typically between 10% and 15% per year. This may be higher than other lenders but reflects the fact that no security is taken over your company’s assets and no personal guarantees from business owners are required – which most other lenders insist on.

Whether you want funding for modest or major plans, it is worth talking to NEL as they consider each application individually. Family owned, North Tyneside based fire safety equipment firm Cherry Parts used a loan to diversify its product base and said that “NEL’s interest in us as people, as well as in our business performance, made the investment option they presented the right one for us to choose.”

The investment process


If you already have a business plan, share it with NEL. If you do not yet have a business plan, you can submit an enquiry to NEL and they will provide you with a template.


Before and/or after providing the plan, NEL will meet with you to find out more about your business and plans and to explain the terms on which a loan could be made.


If the loan terms are agreed in principle, NEL will then undertake due diligence on your company and on the information you provide, to verify that your company will be able to make repayments. The loan is provided following signature of legal agreements.

Interested in applying?

Check your company’s eligibility and suitability by phone or email with North East Fund or NEL Fund Managers. Discuss your product, future plans and funding requirements to check whether you should prepare and submit an application for investment.

Contact NEL Fund Managers:

T: 03453697007

Companies that we’ve backed


Useful links


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Contact details


T: 0191 211 2300


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