REAL HELP FOR BUSINESS
East Midlands businesses are set to benefit from the Government's new package to help them through the current economic downturn. The national "Real Help for Business" initiative which was launched recently includes a finance programme that provides:
- Up to £1.3bn of additional lending through an Enterprise Finance Guarantee
- Up to £10bn Working Capital Guarantee, securing up to £20bn of lending
- £75m capital fund to invest in businesses that need equity or quasi equity
Stephen Smith, Chief Executive of EMB Ltd, the organisation that delivers the regional Business Link service on behalf of East Midlands Development Agency, says: "This initiative should provide valuable assistance for many businesses and complements the work of emda, Business Link and our partners in supporting the region's businesses through these difficult times."
In addition to the finance initiatives, a new, dedicated Business Payment Support Servicewill provide a fast and streamlined service for businesses to arrange payment of their HM Revenue & Customs (HMRC) tax bill to a timetable they can afford.
Business Link has set up a website page containing information on the initiative at www.businesslink.gov.uk/eastmidlands/realhelp/finance.
Eric Carveth, Leicestershire Area Manager for the regional Business Link service, adds: "I would encourage any business that is looking for advice, information and support for their enterprise to contact us as soon as possible so that we can help them to access the appropriate help quickly."
To find out more about the local events taking place contact Business Link on 0845 058 6644 or email mailto:firstname.lastname@example.org
EMDA ANNOUNCES LOAN FUND TO HELP BUSINESSES
East Midlands Development Agency (emda) has announced a further step to support small businesses during the economic downturn.
A new fund, known as the East Midlands Transition Loan Fund (TLF) is making £5m available to businesses across the region. This will help to address some of the problems that businesses are currently facing in obtaining credit through banks and other traditional routes.
The TLF, which was first announced in the Government’s Pre-Budget Report, will provide individual loans of between £50k to £250k for up to three years. The TLF will be made available to small and medium sized (SME) businesses that have been trading for at least six months and which have good management and viable business plans.
The loans will focus on supporting businesses through the economic downturn rather than providing development capital, and applicants will need to demonstrate a positive impact on job creation or safeguarding.
The East Midlands Transition Loan Fund is being run on a commercial basis and loans will be subject to variable interest rates, reflecting the nature of risk undertaken, and fees. The loans will be secured against assets in the business and the fund manager will be required to assess the viability of the applicant business.
As part of this, businesses will need to provide a business plan including a summary of the business activity, the latest accounts and financial projections. Due to EU regulations, some activities, such as retail and property development, will not be eligible for funding but the majority of East Midlands businesses could potentially qualify.
For more details about the TLF, contact Business Link on 0845 058 6644 or visit www.businesslink.gov.uk/eastmidlands/tlf