New Enterprise Allowance | Funding for North East Startups | Exaltis
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New Enterprise Allowance

New Enterprise Allowance

Funding for North East Start-ups

There used to be an abundance of funding available if you wanted to start your own business, but unfortunately, this is no longer the case.

There are still some funds available, such as NBSL funding, but they often only apply to established businesses, which is no good if you’re a new start-up.

The good news is that the government offers a New Enterprise scheme to help people who are just starting out.

Business Funding

The New Enterprise Allowance (NEA) Scheme

The NEA is a combination of business mentoring and financial assistance. There are a couple of boxes that you need to tick in order to be eligible for this. Firstly, you need to be over 18 years old. Secondly, you or your partner need to be claiming Universal Credit, Jobseeker’s Allowance or Employment and Support Allowance, or, you must get Income Support as a lone parent, or as someone who is sick or disabled. This means that if you’re already employed, you cannot apply for the New Enterprise allowance.

How Much is the New Enterprise Allowance?

If your claim for NEA is successful, you will be assigned a business mentor and you will receive £65 for the first 13 weeks, then £33 for another 13 weeks. You also have the option to apply for a business loan, but your mentor will be able to discuss this in detail with you.

The downside to the NEA is that you will have to stop your claim for Job Seekers Allowance in order to claim for the New Enterprise Allowance. Your business mentor will run through your business plan and will be able to guide you through the best course of action.

Can I Get a Business Start-Up Loan?

There are business start-up loans available, such as the Government-backed Start Up Loan where you can apply for between £500 and £25000 at a fixed rate. However, I would recommend you think about this very carefully and take advice before you apply. Getting a start-up loan means that you are starting your new business in debt and you have to be 100% sure that you can make the monthly repayments.

How Can I Apply for the NEA?

If you would like to apply for the New Enterprise Allowance, you need to contact your local Job Centre Plus and make an appointment with an advisor.

My Claim Was Successful – What Next?

Once you have completed the claims process, this means that (with the help of your mentor) you will have completed your business plan and you now need get your business started. Please get in touch with us once you’re at this stage – we’d love to help you get your business off the ground!

Elaine Parker
[email protected]
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