Cash & support from The Prince's Trust

I wanted to document my experience with the Prince’s Trust, which has been entirely positive, useful and very refreshing. If you are thinking of looking into what they offer this page will hopefully be of some use.

For those unaware of the activities of The Prince’s Trust, it is best described as a business start-up aid for under privileged or under funded entrepreneurs claiming Job Seekers Allowance, needing cash and support to drive their idea forward. After I finished my university course some years ago I struggled to find a job despite my efforts and ended up applying for the program.

A cross section of people (ages 14 – 30) can apply provided you have a business idea: you might be a university graduate struggling to find employment because of your chosen profession (graphic design and fashion design are notoriously difficult for example), you might be a stay at home mother claiming maternity benefits, or you may have just lost your job and have decided to try out that business idea you once had.
During a networking session with other Prince’s Trust applicants, I spoke to someone who needed a £10,000 loan to launch a yacht valeting service, as well as someone who wanted to run a beauty parlour and required much less. However much you want, your idea will be taken into consideration, as long as you are claiming Job Seekers Allowance. That is a prerequisite.

Since the organization is a charity, not a bank, they are less interested in reclaiming the money they lend and will do more in helping you and your business move forward. If approved, you’ll receive a minimum loan of £500, with a fixed 3% repayment rate, and a free minimum grant of £500, although the latter is a postcode lottery system and is not guaranteed. How much you apply for is up to you and what you expect to achieve with your business.

After meeting informally with an advisor and discussing viability, your business plan will go to a judging panel which may or may not require that you actually attend. If you do need to attend, do not worry or think of it as a Dragon’s Den process where the pressure is on and the atmosphere tense. It is quite the opposite – after all, the panel wants to help you. During my own application process I met with my designated advisor, Pete, on several occasions and found him very friendly and knowledgeable. After various email exchanges and several meetings later my business plan was submitted for examination and approved by the panel.

Once approved, you’ll be awarded the money on the condition you attend a classroom session covering business basics such as sales, marketing, purchasing and accountancy. In spite of the early start and my pre-conceived lack of enthusiasm, it actually turned out most interesting and taught me a great deal! The following week I signed an agreement, gave my HSBC business bank account details to receive payment (mandatory but easy to set up with some banks offering the first year free of charge) and waited only a few days before the money appeared in my account.

As well as my £500 loan I was successfully awarded a £500 grant which is actually held by The Prince’s Trust, but available for you to use upon presentation of receipts, proof of costs incurred or invoices to pay. The reason for this is that in some cases thousands of pounds are available in grants for individuals, and to give this away up front, unchecked, may mean funds are abused or spent willy-nilly.

In addition to the aforementioned requirements, you are committed to arranging, attending and maintaining monthly mentor meetings between yourself and your advisor and/or a Prince’s Trust volunteer. If you don’t attend your privileges are suspended.

All in all there are three distinct advantages to starting up a Prince’s Trust business.

1. Your loan is repayable at 3% over 3 years. By moving it from your business account to an ISA you’ll get a better return rate rather than letting it sit in a bank account earning no interest. Subsequently, you can close the business account and forego any bank charges once the free period ends.

2. You get a grant (usually). This is totally free and allowed me to pay printing costs for my illustration work as well as a much needed new hard drive and operating system following an ill-timed system crash.

3. You get free advice and guidance plus access to P.T. publications which you yourself can appear in. This is free advertising and is distributed amongst various enterprise communities on your behalf.

I hope this article has been helpful and that if you are currently unemployed and meet the criteria, or expect to become employed, that you’ll apply as soon as you are able.. It is possible to push the paperwork through in a matter of weeks so make the most of the time you have and see if you can claim funds to launch any lucrative ideas.

Prince’s Trust
Head Office
18 Park Square East
London
NW1 4LH
Email info@princes-trust.org.uk