The “local loans” have been launched following a £500,000 investment by the council, which attracted a further £500,000 of European match-funding.
Impetus will manage the credit scheme, which aims to provide funding for local companies of up to £50,000 that can’t get credit from mainstream sources such as the high street banks. Impetus is a non-profit-making body, known as a community development finance institution, which provides finance to viable enterprises and re-invests its returns in other local businesses that need financial support.
Worcestershire County Council sees the investment as a win-win arrangement, which will help local companies and communities without costing the council a penny in the long run. The council’s £500,000 investment will be repaid over a number of years as businesses use their loans to become more profitable.
Councillor Simon Geraghty, Worcestershire County Council’s cabinet member for planning, economy and performance, said: “It’s vital at this time that we support the private sector to grow and hopefully be able to mitigate some of the impact of job losses in the public sector. We also know that access to finance can be a real barrier for some companies. This new loan initiative is aimed at assisting those firms with viable business plans which are been held back by the current lack of availability of credit. I have no doubt that this investment will help those businesses to grow and demonstrates that the county council and its partners are committed to supporting the local economy at this critical time.”
To read more click here
Source: www.tewkesburyadmag.co.uk