New Enterprise Allowance (NEA)

Coverage: Blackburn with Darwen, Blackpool, Burnley, Chorley, Fylde, Hyndburn, Lancaster, Pendle, Pennine Lancashire, Preston, Ribble Valley, Rossendale, South Ribble, West Lancashire, Wyre,

Finance Type: Mentoring, New Business Start Up, New Product Development,

Summary:

NEA will be available to Jobseekers Allowance (JSA) customers who have been claiming for 26-weeks or more. Participants will get access to a volunteer business mentor who will support them through the process of writing a business plan, starting a business and through to post start.

Once a customer can demonstrate they have a viable business proposition with the potential for growth in the future, they will be able to access financial support. This will consist of:

• A weekly allowance worth up to £1,275, and
•  If they need start-up capital, they may also be able to access a loan up to £1,000 to help with their start-up costs.

Process:

Jobcentre Plus will identify interested and eligible customers and only those referred by Jobcentre Plus to the mentoring organisation will be matched with a business mentor, subject to the suitability of the individual and their business idea.

Following referral to mentoring support, an initial assessment of the customer’s self-employment prospects and their business proposition, including future growth potential, will be made. If the assessment is positive, the customer will be matched to a business mentor to support them in developing their business plan. If not, they will be referred back to Jobcentre Plus and signposted to other sources of self-employment support if that is considered appropriate.

Once the customers have the initial meeting with their mentor they will have up to eight weeks to prepare their business plan for an approvals stage. This period may be extended in some circumstances, where agreed by Jobcentre Plus, but this will be subject to customers fully meeting benefit conditionality rules.

Funding: The total package of support could be worth up to £2,000 to each participant who starts their own business.

Type of Funding: Loan

Project Timeframe - Expiry Date: n/a

Eligibility: The NEA is currently being trialled in Merseyside and will be rolled out to other areas of the UK from April 2011. NEA is being piloted by the Chambers of Commerce on Merseyside.

Disclaimer: The information above was accurate at the time of publishing. This is a constantly evolving directory and we will amend the details as and when required. Regenerate Pennine Lancashire is not responsible for the accuracy of external information.

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