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Does your home business need extra funding? Quite likely, in some shape or form, but you don’t have the track record or security that the bank requires.

Depending on your specific needs and circumstances, the Methodist Employment Generation Fund may be able to assist if you are located in Auckland, Northland or Waikato. Since 1992 the fund has supported more than 130 small businesses and has made loans totalling more than $1,400,000.

The objectives of the fund are mainly, but not exclusively, to provide support for ventures that are demonstrably viable, show good prospects of employment generation, which benefit youth employment and are not eligible for help from other sources.

Financial assistance is provided by way of loans up to about $15,000 - $20,000 for expansion and development. Start-ups will be supported but preference is given to businesses already up and running.

Every enquiry is treated on its merits, but generally preference is given to manufacturing and innovative ventures, rather than those that replicate existing businesses, such as retail.

Funding source of last resort
The fund usually operates as a "funding source of last resort" and applicants should have explored other avenues of finance.

An application form must be completed and accompanied by an up-to-date business plan including financial projections, CVs of principals, details of sales calculations, financial statements for previous years, statement of personal assets and liabilities, and any other relevant information.

In other words, the application process is very similar to that of other lenders.

Successful applicants are required to sign a "Deed of Loan" acknowledging the debt and will be expected to operate proper accounting, commercial and reporting systems. Successful applicants are also required to accept mentor assistance for the duration of the loan.

The fund is administered by a management committee of six and is very versatile in its approach to lending, all members having experience in business or employment fields.

If in doubt, it is always worth making an enquiry and an initial assessment of eligibility can be given over the phone.