BUSINESS LOANS

Opunake Times, 12 September 1941, Page 7

BUSINESS LOANS

FOR EX-SERVIOEMEN

GOVERNMENT ASSISTANCE NEW SCHEME

A further measure of assistance for discharged soldiers, sailors and airmen has been approved by the Government. It is a scheme fo r granting loans of up to £SOO 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 the Minister of Finance, Mr. Nash, in announcing the scheme, “wants to help every discharged man to return to normal civil life, and desires that suitable assistance b* available for each man according to his requirements.

“It will bt the endeavour of the State Advances Corporation, in administering these loans,” said Mr. Nash, to advice the applicant in the selection of a business to which he is suited, supervise the purchase, and help him in every way possible to get established on a sound basis in order that ho may have reasonble prospects Of success. For the sake of the men themselves care must bo taken in their establishment in business.

“It will be the endeavour of the 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 au independent owner. There will be men who, although experienced, are not immediately fitted to assume control of a business, and these will qp encouraged to seek employment on wages for a while in order to refresh their knowledge before action is taken to establish them in businesses of their own account.

"As with all applications for re-patuat-ou loans, each case will bo treated oa its merits, and the applicant wdi oo required to contribute as far as he reasonably can towards the cost of his purchase, only the iialauco being provided by way of a loan. Loans will not exceed £SOO in each case, as there is no intention that the the Government should, finance large business ventures. I believe that there are avenues through which finance may be obtained in the normal course for larger typos of business where the intending purchasers are proved managers, the prospects reasonable, andN there is some financial backing available. The repatrilation scheme is designed to assist those men who are suited to the smaller types of business.

‘‘The rate of interest will be the Corporation’s normal lending, rate of 4. 1-8 per cent, and repayment of the loans will bo on an instalment basis consistent with the borrower’s ability. If help should bo needed during the early stages when business is being developed suitable concessions, will be considered in the lights of the facts of each case.

••Terms of repayment and the type of security to be taken will be at the discretion of the Corporation, which may require a borrower to form, the business into a limited liability company. The Corporation will obtain valuations of plant, equipment ano stock, and will endeavour to protect borrowers from exploitation by vendors, particularly .those seeking to obtain substantial payments for good

will. Arrangements will be made { for borrowers to' have advice in Con- j ducting the business until they are I satisfactorily established. They will j at all times be able to discuss their problems with officers of the Corporation, who will, if necessary, co-opt business associates with special knowledge of the business, and it is hoped that in this way mistakes likely to arise from inexperience will be largely avoided.”