UP TO £500

Auckland Star, Volume LXXII, Issue 211, 6 September 1941, Page 4

UP TO £500

LOANS FOR SOLDIERS

HELP IN NEW BUSINESSES

(P.A.) WELLINGTON, this day. A further measure of assistance for discharged soldiers, sailors and airmen has been approved by the Government. The acting Prime Minister, Mr. Nash, to-day outlined a scheme for the granting of loans up to £500 to men desirous of being established in business. Widows and widowed mothers of deceased servicemen will also be eligible to apply for loans.

"The Government," said Mr. Nash, "wants to help every discharged man to return to normal civil life, and desires that suitable assistance be available to each man, according to his requirements. It will be the endeavour of the State Advances Corporation in administering these loans to advise the applicant in the selection of the business to which he is suited, to supervise the purchase, and help in every way possible to get him established on a sound basis in order to have all reasonable prospects of success.

"It will readily be agreed that a man who is not fitted by experience or otherwise to undertake the management of a business should first be assisted into a position where he is an employee rather than an independent owner. These men will be encouraged first to seek employment on wages to refresh their experience. As with all applications for repatriation loans, each case will be treated on its merits.

"The applicant will be required to contribute as far as he reasonably can towards the cost of his purchase, only the balance being provided by a loan, which will not exceed £500 in each case, as it is not the intention of the Government to finance large business ventures. The repatriation scheme is designed to assist men who are suited to smaller types of business.

"The interest rate will be the corporation's normal lending rate of 4 1-8 per cent. Repayment will be on the instalment basis, consistent with the borrower's ability. If help is needed in the early stages, suitable concessions will be considered in each case. The terms of repayment and the type of security to be taken will be at the discretion of the corporation, which may require the borrower to form a limited liability company.

"The corporation will obtain valuations of plant, equipment and stock, and will endeavour to protect borrowers from exploitation bv vendors Arrangements will be made for the borrowers to have advice in conducting their business until thev are satisfactorily established. It is hoped that mistakes arising from inexperience will thus be largely avoided "