New loan scheme tackles barriers to business
Tuesday 13 July 2010
West Somerset’s would-be entrepreneurs who want to start up businesses and companies looking to expand now have a second chance of getting financial help if they have been turned down for loans by banks and mainstream lenders.
West Somerset Council has teamed up with the Fredericks Foundation to set up a new loan scheme to tackle barriers to business and to provide opportunities for local enterprises to grow.
“Getting loans from high street lenders in the current economic climate has never been tougher for businesses,” explained Corinne Matthews, West Somerset Council’s Economic Regeneration Manager. “We have identified this as a major barrier to business start up and growth so the council, in partnership with the Fredericks Foundation, has set out to tackle the issue at grass roots level.”
Annie Popham of the Fredericks Foundation, said: “Through the partnership, we typically offer loans of up to £5,000 to start up businesses, which can include funding for tools, initial stock, computers or sometimes transport. We can also help existing businesses with financial track records that need a loan to expand.
“We are excited to be working with West Somerset Council, which has taken a proactive interest in setting up this fund.
“People looking to set up new businesses, sole traders, partnerships and limited companies can be considered, providing they can demonstrate that their bank or a mainstream lender has previously turned down their loan application.”
Applicants for the new scheme need to provide a business plan including personal budget, a cashflow forecast for between one and three years depending on their circumstances, a credit report from Experian, Equifax or Callcredit and six months’ personal bank statements. Existing businesses also need to provide the previous three years’ accounts, current management accounts and six months of business bank statements.
A client manager guides applicants through the process and, if the manager is satisfied that a person or business meets the criteria, the case is put to a Loan Panel for a decision.
Cllr David Sanders, Lead Member for Economic Development, said: “I welcome this new scheme as it promises to provide new and existing enterprises with funding opportunities that are few and far between in the current economic climate.
“Given the country’s finances, it is vital that new businesses are nurtured and existing businesses are given the chance to grow. It is key to establishing economic stability.
“The Fredericks Foundation has an excellent reputation in successfully running business loan schemes and I am delighted that we have teamed up with them to provide our local firms and aspiring entrepreneurs with this opportunity.”
For more information phone Annie Popham on 01823 680042, email Annie at annie@fredericksfoundation.net or visit www.fredericksfoundation.org or download a leaflet from West Somerset Council’s website at www.westsomersetonline.gov.uk/Business/Business-Support
For more information contact:
Stacey Beaumont
Media, PR & Communications
sbeaumont@westsomerset.gov.uk
01984 635285