£650,000 has been awarded in the latest round of the Northwest Transitional Loan Fund (TLF); helping businesses from across the region obtain business finance in the absence of conventional commercial sources.
Established in response to the current economic downturn, the £10 million TLF programme is joint-funded, with £5million coming from the European Regional Development Fund programme (ERDF) and £5 million from the Northwest Regional Development Agency (NWDA).
Seven companies have been awarded the loans, including:
• Siltint Industries Ltd, Manchester – £75,000
• A1 Doors, trading as Mandor, Ashton-Under-Lyne – £80,000
• Jaftextil Soft Furnishings Ltd, Bolton, £100,000
An additional £75,000 has recently been provided to a company based in Stockport.
Transitional Loan funding of £50,000 to £250,000 is available to established and viable small and medium enterprises facing a temporary shortfall in their working capital due to the unprecedented combination of credit crunch and global economic downturn.
Steven Broomhead, Chief Executive at the NWDA said: “The NWDA is working hard to identify those businesses that are true victims of the economic downturn, those businesses that unfortunately due to exceptional circumstances are unable to obtain credit from the banks and up until now have operated successfully for a number of years.
“The current economic downturn has affected a number of sectors throughout the region, including those in the latest TLF round. The Agency is confident that by working with SMEs and providing a range of Business Finance Solutions, we will ensure future business growth.”
The ERDF programme is backed by the Programme Monitoring Committee (PMC) – a group of senior representatives from across the region. The Group was formed to monitor, oversee and advise on the delivery of the programme and proved invaluable to the development of the new fund.
Kath Boullen, North West Chambers of Commerce said: “The European Regional Development Fund presents a significant opportunity to assist businesses of all sizes, focusing its investment to maximise impact. The focus of the Transitional Loan Fund is to provide funding for businesses that have experienced financial difficulty as a result of the troubled banking system and global credit crunch. TLF aims to ensure that businesses, especially SMEs, are able to survive.”
In total, the NWDA has brought forward £10 million for the TLF to enable businesses to obtain finance in the absence of conventional commercial sources. Funding is available to companies with a viable business plan, to demonstrate an ability to service the borrowing required.
Since the start of the year, the NWDA has offered over £4 million in TLF.