New Fund to Aid Business Finance; PILOT: Government Minister Hails New Plan for West Midlands Business
Byline: Jenny Waddington
BUSINESSES in the West Midlands will find it easier to get their hands on much-needed finance with the launch of a new pilot fund.
Ian Austin, regional minister for the West Midlands, today announced action to provide continuity of loan finance in the region for businesses with viable plans who cannot obtain the finance they need from mainstream sources.
The plan consists of two elements - allowing the Advantage Transition Bridge Fund to recycle loan repayments into new loans, thus enabling it to keep lending until November 30, as well as releasing pounds 2 million as a pilot for a new follow-on fund to be fully launched later in the year.
The emphasis of this pilot fund will be on supporting businesses with strong growth prospects, rather than meeting short-term liquidity problems which was the focus of the original transition loan funds.
The RDA Transition loan funds were introduced in November 2008 as a short-term measure to assist viable companies who were experiencing problems in obtaining credit.
The West Midlands' fund - ATBF - has been highly successful in meeting this objective and will continue lending until it is fully subscribed or, if earlier, until the end of November.
So far the pounds 9. …