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Vince Cable pledges £60m fund to SMEs

A £60m investment from the Regional Growth Fund launched by Business Secretary Vince Cable will protect more than 8,000 jobs over the next six years.

The Government will contribute £30m to drive growth and investment for small businesses to help them procure accounts receivable loans and other needed loans to promote growth. This was matched by the Co-operative Bank and Unity Trust Bank to offer funding to SMEs.

The Business Secretary announced the fund at the Community Development Finance Association’s (CDFA) annual meeting, which will receive half of the investment pot to allocate to its members.

Ben Hughes, Chief Executive of the CDFA said: “This investment is critical to the survival of many small and micro businesses who, without this support, would simply not exist.

“It’s a milestone, yet just the starting point for an exciting – and timely - expansion of the community finance sector; greater investment like this offers a new way of creating wealth – that’s sustainable and ethical yet that also makes sound business sense.”

Vince Cable also visited a Birmingham-based bakeware company, Utensa, has already received £30,000 loan for its manufacturing base.

The company, which supplies baking and cookware to stockists around the UK, received the funding from Aston Reinvestment Trust (ART), through a CDFA member.

Utensa will use the money to compete with rivals in the Far East, safeguard jobs in the company, and increase its workforce.

Robert Jones, Managing Director of Utensa said: “Without support from a CDFI we would not be where we are today.

“The loan has made a significant difference to our ability to remain competitive and helped to put the company on a firm footing for the future.”

Speaking at Thursday’s CDFA conference, Vince Cable commented: “We need effective channels to support small business which is why the CDFA and its members are so important for providing access to finance and kick starting the economy.

“They are best placed to ensure that the £60 million goes to those SMEs, such as Utensa in Birmingham, that will create jobs and unlock private investment.”

As a joint investor with the Government and Co-operative Bank, the managing director of Unity Trust Bank, Richard Wilcox highlighted his commitment to the community.

He said: “Banks have a responsibility to help build strong, stable communities where business can thrive and people are secure in their jobs

“As a social enterprise ourselves, Unity Trust’s £15 million support to the CDFA and the Regional Growth Fund builds on our long-held commitment to the social economy sector as a powerful engine for growth, jobs, enterprise and positive social change in communities that need it most.”

This was posted in Bdaily's Members' News section by Miranda Dobson .