Lottery business loans
The IW Lottery has been supporting the Island economy since 2001 and has created and supported hundreds of jobs in the local economy, providing almost £700,000 of interest free loans to Island businesses.
The Isle of Wight Lottery is the first lottery in England to be developed specifically to create employment opportunities. The Lottery is promoted by The Hampshire and Isle of Wight Opportunity Society Limited, which is operated on a strictly "non-profit" basis. The lottery is governed by the Gambling Commission which requires the lottery to contribute a minimum of 20% of its gross proceeds to a Restricted Good Causes Fund. The Isle of Wight Lottery has two Good Causes. The first is providing interest free loans to people starting up in business. It was set up specifically to assist entrepreneurs who have had difficulty accessing finance through traditional methods. The Lottery generates a Loan Fund which is available for island entrepreneurs to borrow interest free to either start or expand their business. Criteria for the loans are that it must be creating a job and the amount of the loan is up to 50% of the total project's cost with a minimum of £2,000 and a maximum of £25,000 available. Loans may be applied for on completion of the start up training course (Good Cause Two) and all loan applications are assessed by an Investment Panel and if approved they are provided on an interest free basis to both start-up and expanding Island businesses, thereby enabling them to create new jobs. If successful the loan recipients will be allocated their own business advisor who will be available to mentor them and offer them business advice free of charge for the duration of their loan.
For a Lottery loan application pack please call our offices on 01983 529888.
The second Good Cause is our Start Up Your Own Business Course and ongoing mentoring programme delivered by the IW Chamber of Commerce "The Voice of Island Business". These courses are for the IW Lottery Loan recipients as well as any other island entrepreneurs looking to set themselves up in business. If you are interested in coming on one of our free one day courses you will find all the dates of our courses and the link for booking on the course in the Start Up Tab.
The overall aim of both of these good causes is to Support Island Business and together create and sustain Island jobs.
The IW Lottery is promoted by the Hampshire & Isle of Wight Opportunity Society which is a member of the Community Development Finance Association (CDFA) which is the membership body for Community Development Finance Institutions in the UK. As a condition of membership to the CDFA, we have signed up to the CDFI Codes of Practice* and adhere to the following Ten Standards and follow best practice contained in the overall Code of Practice:
1. Clarity in respect of loan interest rates, repayment, default and cancellation arrangements.
2. Customer awareness that the CDFI adheres to these ten standards within the Code of Practice, in a customer-facing document published on website.
3. Legal compliance - the CDFI will comply with all relevant laws, regulations and the requirements of its regulators, including the timely submission of accounts and returns.
4. Clear financial processes - the CDFI will adhere to financial approval and decision making processes, operate a well-managed portfolio, and its Board will monitor the finances of the CDFI.
5. Accountability by the Board - the Board will always act in the best interests of the CDFI, representing its shareholders and/or members, and reporting back to them.
6. Management of Risk - the Board will establish or ratify policies and decisions on all matters that might create significant risk to the CDFI, financial or otherwise, and maintain a risk register.
7. Internal controls - the CDFI will maintain a set of procedures designed to protect against financial mismanagement and fraud.
8. Conflicts of Interest: A CDFI will manage any conflicts of interest arising out of its governance or business activities.
9. Complaints: A CDFI will deal honestly and efficiently with all complaints and if necessary will take part in conciliation or go to arbitration.
10. Social Performance: A CDFI will take steps to measure and report on its social performance.
* Ten Standards of Compliance with the CDFI Code of Practice - CDFA Code of Practice 2012