12th May 2005
Major finance boost for objective 2 businesses

Small and medium-size businesses in Devon’s Objective 2 area are being offered a major financial boost with the launch of a new £2.4 million loan support fund.

The new scheme has been launched by South West Investment Group (SWIG) – the region’s leading gap-fund provider - in partnership with Business Link and Lloyds TSB Business Banking.

It means SMEs operating in the county’s Objective 2 area will now have the opportunity to raise the capital they need that has not been forthcoming from traditional sources.

The project is being funded through the European Social Fund and follows a successful bid by SWIG, a not-for profit private-public sector partnership with offices in Exeter and Truro, to the Government Office for the South West.

Rather than solely provide funding, the new initiative is unique in that it will provide packaged pre- and post- investment mentoring support via Business Link, which will employ a dedicated business adviser paid for by the scheme.

The funding has been launched to intermediaries in the area such as bank managers, accountants and financial advisers through whom funding applications must be made.

SWIG managing director Peter Casey said: “The support of Business Link and Lloyds TSB has been of immense value in securing what is going to be a significant benefit for SMEs in the Objective 2 Devon area.

“Any company that feels it may qualify for assistance and which operates in the Objective 2 Devon area should waste no time in applying, because the sooner they do so the sooner they can be assessed and, if they meet the criteria, helped to achieve their potential.”

The addition of pre and post investment support will, according to Ian Gent of Business Link, enable businesses that are successful in their funding bid to make the most of the support provided.

“This is the first time a commercial finance organisation, a specialist organisation and the region’s leading Business Support organisation has come together in a partnership venture designed with SME’s in mind.

“Bringing in the added layer of pre and post investment support means the funding should make an even bigger impact for those businesses that successfully apply for it,” said Mr Gent.

Martin Racher of Lloyds TSB Business banking believes the launch of the new fund will help make a real difference to the economic growth in the Objective 2 Devon area.

"We are delighted to be involved with this fund which will bring added levels of flexibility when structuring a finance package for new or existing customers. Time and time again we have seen this extra help make the difference between success and failure for a businesses expansion plans.

“This fund feels unique because of the additional help and ongoing support provided by Business Link. There are around 70 Lloyds TSB Business Banking Managers in the Devon area alone who will be pleased to have this as an additional tool in their finance kitbag. In Partnership with SWIG, and Devon & Cornwall Business Link, we can make a real difference to economic growth in the area."

The Objective 2 fund, comes on the heels of a successful £2.5-million Objective One fund recently launched in Cornwall.

Since starting its loan funds in 1996 SWIG has helped create over 1,000 new jobs in the South West by delivering more than £6-million of support.

For more information on how to apply for the funding, contact South West Investment Group on:
01392 473439.