EX-SERVICE MEN

Wairarapa Times-Age, 6 September 1941, Page 4

EX-SERVICE MEN

SCHEME FOR GRANTING LOANS OUTLINED BY MR NASH. PROVISION FOR GUIDANCE. (By Telegraph—Press Association.) 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, today outlined a scheme for granting loans of up to £5OO to men desirous of being established in business. Widows and widowed mothers of deceased service men 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 suitable assistance to 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 a business to which he is suited, to supervise the purchase and help in every way possible to get the applicant established on a sound basis, in order that he will have reasonable prospects of success. It will readily be agreed that a man who is not fitted by experience or otherwise to undertake the manage- / ment 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 ap-

plications 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 loan, which will not exceed £5OO in each case. As there is no intention that the Government should finance large business ventures, the repatriation scheme is designed to assist men who are suit- : ed to smaller types of business. The I interest rate will be the CorporaI tion’s normal lending rate of 4 1-8 per : cent. Repayment will be on an 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 type of security to be taken will be at the discretion of the Corporation, which may require a borrower to form a limited liability company. The Corporation will obtain valuations of the plant, equipment and stock and will endeavour to protect borrowers from exploitation by Vendors. Arrangements will be made for borrowers to have advice in conducting their business until they are satisfactorily established. It is hoped that mistakes arising from inexperience will thus be largely avoided."