Struggling West Midlands small firms given cash boost

Small Business News

The Government has set up a £4 million loan fund to help struggling small firms in the West Midlands survive the credit crunch.

According to the Department for Business, Enterprise and Regulatory Reform (BERR), the fund is designed to help small and medium–sized enterprises (SMEs) overcome short–term funding problems. Loans of between £50,000 and £250,000 are available to established businesses for a maximum period of three years.

The fund is being provided by Regional Development Agency Advantage West Midlands. Eligible firms can apply for funding straight away. Business Secretary Lord Mandelson said:

“Access to finance is crucial for businesses to survive. With this fund, local firms can access the money they need to weather the economic storm and come out stronger the other side.”

Norman Gascoigne, chairman of the Advantage Transition Bridge Fund, the organisation responsible for administering the loan fund, said the scheme was addressing the problems that many businesses currently faced in obtaining credit through banks and other traditional lenders.

“Funding may be copied in other regions across the UK, but nothing has yet been confirmed by BERR,” he said.

Businesses which think they may be eligible for support should contact Paul Wheeler or Norman Gascoigne at the Advantage Transition Bridge Fund on 0121 200 8195

For tips on your businesses finances, read our article on managing your cashflow