Prosperity Loan Fund

The LEP has allocated at least £5m in loan funding for capital investment proposals ranging from £100,000 to £1,000,000, with a plan to support at least five projects. In exceptional circumstances, the LEP may consider applications above £1m. If your project does require more than £1m of loan funding, please get in touch with us before completing an application. The loan amount you apply for must not be more than 50% of the total cost of your project, with at least 50% of total project costs being confirmed from your own funds or secured third-party funding.

To receive loan funding help, projects must be able to demonstrate that they can achieve one or more of the following fund goals:

  • Support the growth of our core sectors (see below), in terms of new customers secured, greater turnover)
  • Create direct jobs off the back of the project
  • Develop new skills capabilities that meet the needs of the employer and the wider community
  • Provide the right infrastructure to unlock new business opportunities
  • Support the Solent region’s move to Net Zero

Sector priorities:

  • Priority 1: Establishing a world-leading marine and maritime economy
  • Priority 2: Delivering cutting-edge approaches to climate change adaptation and decarbonisation
  • Priority 3: Revitalising coastal communities to support the Solent in becoming the UK’s capital of coastal renaissance
  • Priority 4: Creating a thriving visitor, creative and cultural economy
  • Priority 5: Developing a world-class talent pool
  • Priority 6: Establishing an outstanding business environment
  • Priority 7: Putting health and wellbeing at the heart of economic success.

To express your interest in this Loan, please download the spreadsheet below, save it, update it, then email it to us at pipeline@solentlep.org.uk

Eligibility Criteria

Does My Project Meet the Eligibility Requirements?

To apply, your project must be located in the Solent Local Enterprise Partnership area and be a UK-based company.

There are a few requirements your business must meet before applying. See the full list of eligibility criteria below.

  • Deliver economic outputs in the Solent Local Enterprise Partnership area
  • Be seeking loan funding of no less than £100,000 and no more than £1m (The level of loan you apply for must not be more than 50% of the total cost of your project, with at least 50% of total project costs being confirmed from your own funds or confirmed third party funding)
  • Commence delivery on site by the end of March 2023 (projects that can start sooner may be prioritised)
  • Demonstrate the ability to pay back the loan funding in no more than 36 months from the commencement of the agreement (including any agreed repayment holiday period)
  • Be able to offer non-personal security to underwrite the full value of the loan at the cost of the bidding organisation.
  • Be within one of the following sectors:
    • Maritime
    • Advanced Manufacturing
    • Transport and Logistics
    • Leisure, Hospitality and Tourism
    • Healthcare and Medicine
    • Greentech - Products and services the use of technology and science to reduce human impacts on the natural environment.
    • Creative and Cultural
    • Aerospace
    • Retail (Online and Bricks and Mortar)

In exceptional circumstances the LEP may consider requests for loan repayment over a period beyond 36 months, but no longer than five years (including any agreed repayment holiday period) for projects that can demonstrate a longer period over which significant outputs can be delivered.

Who can apply?

  • Private sector businesses (including social enterprises) in the UK and located in the Solent area
  • Further education colleges and universities based in the Solent area

What we are looking for

Projects must be able to show that they can satisfy at least one or more of the following fund goals:

  • Support the expansion of our core sectors (see below) in terms of securing new customers and increasing turnover
  • Create direct jobs
  • Strengthen skill sets in respect to the business’ and sector’s needs
  • Provide the right infrastructure to unlock business growth opportunities
  • Support the Solent’s agenda in transitioning to Net Zero

Project Outcomes

It’s vital that we measure the impact of LEP loan funding and the changes that result from the projects. We are therefore keen to learn more about what outputs your project will deliver, and will prioritise project that can deliver one or more of the following:

  • Help our core sectors to grow and thrive (in terms of new customers secured, increased turnover)
  • Create direct jobs
  • Strengthen skills offering based on the employer and industry’s needs
  • Provide enabling infrastructure to unlock new business opportunities
  • Support the Solent on its journey to Net Zero

Project Delivery

We are eager to support highly deliverable projects that can get up and running as soon as possible. We will need to see proposals that can get started (on-site) by the end of March 2023, and finish (practical completion of project) by June 2024. Priority may be given to projects that can be completed in a short period of time.

We will give precedence to projects that can demonstrate how all project finances and agreements are in place, and that the project will be ready to roll out by the end of December 2022.

What Kind of Loan Funding is Available?

We are making the loan funding accessible for a range of capital projects, ensuring that the money is distributed to projects of varying size. The minimum loan funding request threshold is £100,000 and the upper limit is £1m . The loan amount you apply for must not be more than 50% of the total cost of your project, with at least 50% of total project costs coming from your own funds or confirmed third-party funding. We are unable to accept grant funding requests.

Important – As part of the due diligence process, the Solent LEP and its accountable body will need to see a debenture or other form of non-personal security when you apply.

How to Apply and the Assessment Process

Applications

Applicants will need to complete the Prosperity Loan Fund Expression of Interest (EoI) Form, which is available here. This will allow applicants to secure an early response on whether their application is eligible. Eligible applicants will be invited to complete the Prosperity Loan Fund application form (not available for download). The application form draws on the approach adopted by HM Treasury and the business case templates and guidance that is published here: The Green Book: Templates and support material - GOV.UK (www.gov.uk).

EoI forms should be sent to the LEP at pipeline@solentlep.org.uk by 23:59 on Friday 8 July. Don’t forget to complete the declarations and eligibility check list before sending off your application.

Application Timeline

Below is a list of important application deadlines and dates to make a note of:

8 June 2022

Loan Fund Launched

8 June 2022

Expression of Interest window open

Sessions to support potential applicants. We strongly advise attending the below events to assist with your application:

  • 8 June 2022 (At the Solent Summit)
  • Webinar 24 June 2022 (11.00-12.00)
8 July 2022

Deadline for submission of Expression of Interest form

July 2022

At-a-glance eligibility check

This is to ensure you are eligible to apply before you spend time filling out a full application form.

18 July 2022

Invites to submit full applications sent out

30 September 2022

Deadline for full application

3 October 2022

Independent due diligence

Independent expert carries out due diligence and financial due diligence checks of applications. Please be aware that we may ask you to answer more questions or provide further evidence.

8 November 2022

FFPMG Meet

LEP Funding, Finance and Performance Management Group (FFPMG) will meet to review the applications.

We will let you know the outcome of your application within five working days of the LEP Funding, Finance and Performance Management Group (FFPMG) meeting. If you are unsuccessful, we will happily offer you a feedback call to tell you why.

December 2022

In-principle loan offer

For successful applicants.

Need More Help?

If you have any general questions regarding any of the information provided in this document, please feel free to get in touch with us using the details below:

Email us at: enquiries@Solentlep.org.uk

Or give us a call on 023 9268 8055

Send your applications to: pipeline@solentlep.org.uk.

To watch a previous webinar about these Loans, click here.

Prosperity Loan and SME Priority Sectors Loan Funds

Loans for large projects, and for SMEs and entrepreneurs, that will support our 2050 vision, ambitions and aspirations of those working and living in the region. Click on this link where you will find a tab for each of the Loans.

Find out more