March 10, 2022
Loden Spring Call for Business Proposals 2022
The Loden Foundation in partnership with Boiling Point, Society Switzerland Bhutan and Bhutan Foundation is pleased to call for business proposals from aspiring and existing Bhutanese entrepreneurs. The program shall support a wide range of entrepreneurial ventures that are innovative, viable and capacity to scale up. It is particularly important that the proposals are aligned to the national priorities of creating employment, substituting imports, and improving the resilience of the Bhutanese economy.
I. Standard Selection Process:
An independent panel of judges composed of both national and international business experts will evaluate the business proposals and the applicants. Shortlisted applications will then be called for an interview in April 2022 at the Loden office in Thimphu, or conducted virtually. In case of changes in timing, prior notice will be given on the website.
II. Standard Loan Scheme and Repayment Procedure:
Selected applicants will be offered interest and collateral-free loans up to Nu.1.5 million, repayable within four years. The loan will be disbursed within two months after the final results are announced and upon fulfilling all necessary prerequisites. The selected applicants will be asked to sign a loan agreement with the Loden Foundation and also present a guarantor. The loan is disbursed in two tranches. The second tranche of the loan shall be made upon verification of the proper use of money received in the first tranche and with a positive recommendation from the project monitoring team from Loden.
III. Mentoring Support:
Mentoring support shall be provided to the selected entrepreneurs to support the progress of the business and provide guidance in necessary areas related to business. Once the business is operational, the entrepreneurs shall submit a detailed bi-annual written report to the Loden office. The entrepreneurs are normally given a grace period of up to six months and are required to pay back the entire amount of the loan within a four-year time frame.
IV. What business ideas are eligible to apply?
The Loden Entrepreneurship Programme (LEP) exists to help young Bhutanese men and women who have a vision, drive and idea to set up or scale up a business, which is economically beneficial, socially responsible, culturally sensitive, and environment friendly.
The proposal will be evaluated based on the following priority criteria:
- Financial viability (able to repay the loan)
- Cultural, social and ecological sensitivity (e.g. not a slaughterhouse, fishery, logging, bar etc.)
- Clear and realistic
- Social impact such as employment generation, community benefit, etc.
- Geographic suitability or regional balance (advantageous to be based outside Thimphu)
- Non-duplication of LEP funded project or projects (should not be something which is already in the market and where there is no requirement for such projects)
- Entrepreneurial drive and motivation (good business is not sufficient; we need real entrepreneurs)
- Personal commitment (teamwork and personal investment are a plus)
- Skills (understanding competition and key business indicators)
V. Application Process:
There are TWO application processes, please choose any ONE of the following:
1. Process A: Applicants must submit the business proposal template developed by Loden Foundation, which is available (HERE). If you are following process A, you do not have to submit the documents listed in process B, because those documents need to be attached in the same template.
2. Process B: Applicants who are submitting their own business proposal must submit the following documents:
- Business proposal (not exceeding 15 pages) GUIDELINE
- Curriculum Vitae (CV)
- Personal statement explaining why you are interested in the chosen business
- Duly filled ‘Business Plan Submission form available HERE
- Latest CIB report of the applicant. If you are married, you also need to submit your spouse’s CIB report from the Credit Information Bureau of Bhutan. For further details, you may visit: https://www.cib.bt/ProductAndServices/Downloads.aspx
- CID copy
Note 1: We also encourage you to submit supporting documents (if applicable) such as lease approvals for land, proforma invoices of machinery and equipment, and applicable recommendation letters proving proficiency or recognitions, etc.
NOTE 2: If you are a returning applicant applying with the same idea, you must explicitly mention what is new in your business plan. You must also indicate if you have received or applied for funding for the same business from other funding sources.
Interested applicants must submit the complete set of documents via email in a single PDF file to firstname.lastname@example.org
Applications submitted after 5 pm, 9th April 2022 will not be considered. Only shortlisted candidates will be contacted for the interview rounds. For any further information, you may contact Mr. Lhakpa, Programme Officer, at office phone 7719-5599 or email at email@example.com during office hours. You can also get in touch with him at his personal number at 17609035 during the lockdown and urgent times.
Check Frequently Asked Questions for additional information.