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Ten lucky businesses will benefit from the new microfinance scheme announced by Craigavon Borough Council. A combination of a government grant as well as free rent will help new businesses grow and expand.

Ten companies were chosen in 2014 to receive free rent for a period of four months. Each received the use of town centre property exclusively for business use, and they paid zero rent during that period. Five of the companies were in Lurgan while another five were chosen from Portadown.

To further spur economic development, the scheme paid each business a one-time payment of £500. Funds are used to purchase equipment, pay for advertising or for other investments used by entrepreneurs to grow their businesses.

One of the biggest impediments to small business owners is upfront capital costs. Many are unable to commit to a long-term lease on a commercial property when they are just getting started. What the free rent does is to allow these businesses a place to set up and to conduct operations without having the related risk of defaulting on an office lease. They can reinvest the proceeds from the business and save up for the deposit for a proper office location once they have gotten past the initial hurdles associated with starting a new operation.

The small business funding scheme allows for new businesses to establish themselves and hopefully on their way to greater successes. Entrepreneurship is commonly agreed to be one of the best ways for a local community to bounce back from a difficult economic environment. While most small businesses fail within five years, it is this type of support that could provide just what a new venture needs to survive.

The initial free rent and grant allow a small business to get established much in the way that a small business loan could with one big distinction. There is no debt resulting from the scheme.

A successful business could emerge from this grant scheme with a successful operation. Council leaders know that a successful operation makes a small business loan much more likely, which could fund further expansion.