Telford & Wrekin loan fund hits £200k mark in small business support
A small business loan fund run by Telford & Wrekin Council has now allocated around £200,000 to small businesses in the borough in its first five months.
The scheme, a one year trial run by the Council with funding partner Impetus, is making up to £400,000 available in loans for borough businesses in the current year.
The scheme targets firms who cannot access funding from mainstream lenders and is a key part of Telford & Wrekin’s Co-operative Council approach.
So far, six borough businesses have received funding from the Small Business Loan Fund set up to support fledgling businesses or social enterprises.
It aims to help small or medium-sized borough businesses who can't get support from normal high street lenders to grow, loaning between £1,000 to £100,000 to cover start-up costs, finance growth, help develop new products or services.
So far the fund has received 27 applications for more than £360,000, however some applications have not been able to proceed either because they don't meet lending criteria or are not in the borough.
A further £200,000 is still available for loan before the end of April 2013 and any business wanting to apply for a loan should contact 01952 567589 or investintelford@telford.gov.uk.
Any business wanting to apply must be based in Telford and Wrekin, produce a business plan and show evidence that they have been turned down by “mainstream” funding institutions. Applicants must also show that they intend to protect local jobs.
Cllr Shaun Davies, cabinet member for Neighbourhood Services and Co-Operative Council, said: "We are now starting to see real benefits from the scheme for local businesses.
"This is about creating opportunities for firms, who cannot get mainstream funders to support them, to grow and thrive.
"The loan scheme is part of our support package for local businesses and follows one of the recommendations made by the independent Co-operative Commission. We are a Council that supports and helps win business for the borough."
Telford & Wrekin Council runs the fund jointly with community development financial institution Impetus.
This initiative also supports the work of the independent Co-operative Commission, made up of business and community representatives, which asked the Council look steps it can take to boost the local economy through greater inward investment and more effective support for existing businesses.
