(18 April 2007 – Australia) National Australia Bank is set to trial its Microenterprise Loan program in Southern Adelaide.Microenterprise loans are a not-for-profit initiative established by NAB to fund aspiring small business owners who are unable to access finance via the usual channels.
“NAB’s Microenterprise Loan is an unsecured, low interest business loan of between A$500 and A$20,000 for people who are financially disadvantaged and have few or no avenues to access affordable credit,” NAB regional executive for Southern Adelaide, David Woodcock, said.
“Eligible applicants will be given access to financial assistance and also be given business skills training and advice during their first year of operation,” he said.
Woodcock stressed that the loans were not a hand-out and that some ‘sweat equity’ was required from applicants who would need to present a business plan as well as commitment to the training the bank would provide as part of the program.
NAB has received backing for the initiative from the SA Department of Trade and Economic Development. The Department will fund the successful loan applicants’ business literacy training and mentoring needs by providing financial assistance to the Southern Success Business Enterprise Centre.