Lottery business loans
The Isle of Wight Lottery was launched in 2001 and is the first lottery in England to be developed specifically to create employment opportunities. The Lottery is promoted by The Isle of Wight Opportunity Society Limited, which is operated on a strictly "non-profit" basis. 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.
Since its inception, the IW Lottery has loaned to over 68 companies and created thousands of jobs. All recipients must have completed the start up training provided by the IW Lottery. Following receipt of the loan businesses are mentored for the duration of their repayment and business advice is always on hand. Due to the independence of the IW Lottery it is able to offer businesses flexible terms for repayment according to seasonality or cash flow issues.
The Isle of Wight Lottery 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 offered within the Lottery and each application is considered by an independent panel of local business people.
For a Lottery loan application pack please call our offices on 01983 529888.
The IW Lottery is promoted by the IW 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:
- Clarity in respect of loan interest rates, repayment, default and cancellation arrangements.
- Customer awareness that the CDFI adheres to these ten standards within the Code of Practice, in a customer-facing document published on website.
- 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.
- 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.
- 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.
- 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.
- Internal controls - the CDFI will maintain a set of procedures designed to protect against financial mismanagement and fraud.
- Conflicts of Interest: A CDFI will manage any conflicts of interest arising out of its governance or business activities.
- Complaints: A CDFI will deal honestly and efficiently with all complaints and if necessary will take part in conciliation or go to arbitration.
- 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