Care Inc No Interest Loan Scheme

Updated March 2014 ACT Microcredit Loan Program

What is it? The ACT Microcredit Loan Program was launched by the Minister for Community Services, Andrew Barr MLA on 24 February 2014. The program is delivered via a three-way partnership involving the ACT Government, Westpac Institutional Bank and Lighthouse Business Innovation Centre. This partnership seeks to provide fair, safe and ethical loans to people who, because of their circumstances, are not able to assess mainstream financial services. The ACT Microcredit Loan Program provides a limited number of low interest and fee-free loans for eligible low-income earners who wish to start or expand an existing business. The program provides loan recipients with business skills development, individual mentoring, peer support and access to networking events. Interest free loans, up to the value of $3,000, and low-interest loans, valued between $3,001 and $10,000, are available to eligible individuals. The program will provide a range of services including an orientation session, business ideas assessment workshop, training, one-on-one mentoring, peer support and opportunities to attend events such as expert peer-led group discussions and networking events. The focus of the Program is on skilling the loan applicants and recipients on business planning and management to ensure that only businesses that have a reasonable chance of success are supported.

Who is eligible? The new loans target a number of key groups including Aboriginal and Torres Strait Islander people, migrants, young people, women and lesbian, gay, bi-sexual, transgender and intersex individuals. See eligibility and selection criteria here.

How do I apply? Competitive loans are granted based on satisfying selection criteria.

The ACT Microcredit Loan Application process is as follows:

Step 1: Attend or view Orientation Session (compulsory for any potential applicant). Please email [email protected] to register your interest.

Step 2: Complete and submit an Expression of Interest (EOI) Form after providing proof of having completed Step 1. Step 3: Attend an initial meeting with Lighthouse Client Manager to discuss business idea and execution plan.

Step 4: Applicants will be shortlisted on the basis of the submitted EOI and invited to submit a full application.

Step 5: Submit application with completed personal budget. Applications for interest bearing loans require a business budget.

Step 6: Applications are reviewed by panel of Lighthouse client managers. Shortlisted applicants are invited to present their applications.

Step 7: Successful applicants are notified and a meeting scheduled to complete BizLab and determine work plan and loan amounts. If unsuccessful, Lighthouse will arrange a debriefing and provide follow up assistance either internal to Lighthouse or referred to other appropriate services.

Step 8: Loan Agreements signed.

Step 9: Follow up meeting scheduled according to work plan.

Step 10: A program of events (peer groups, general workshops and online learning tools) will be promoted to all applicants whether successful or not. There will be one face to face peer group session schedule each quarter with some more informal activities, including on line chat sessions.

Contact Lighthouse Business Innovation Centre Unit 6, 65 Tennant Street FYSHWICK ACT 2609 Phone: (02) 6163 8300 Web: Lighthouse Business Innovation Centre