NAB funds youth business

Small business owners under 30 years old with no business track record are being offered micro-enterprise loans by National Australia Bank. The non-profit group Enterprise Network for Young Australians has partnered with NAB to assess loan applications and business plans from young Australians looking to start their own business. Applicants for the loans of up to $20,000 must be under 30, have never been bankrupt and must work with a business mentor for 12 months. NAB said they had funded 110 businesses so far under the program with average loan size being about $15,000. The default rate so far was about 4 per cent on an interest rate of 9.95 per cent. NAB said they were losing money on the program but continuing with it as part of their social responsibility program.

Source: The Australian Financial Review