ART Business Loans: Time for the public and private sectors to invest in their own back yard

By Dr Steve Walker, chief executive of Birmingham-based ART Business Loans

SIR Adrian Cadbury’s recent memorial service in Birmingham Cathedral provided many with the opportunity to reflect on a wonderfully full life, and one which gave so much back to those who were fortunate enough to know him and work with him.

I am sure that as the founding chairman of ART Business Loans, formerly Aston Reinvestment Trust, and our life president, he would have remembered, as I do, the humble beginnings of a new idea which involved encouraging others to invest in ART.

We planned in turn to invest in businesses, providing loans where the banks were unable to help, initially in inner city Birmingham, to facilitate ‘access to finance’ and the creation of ‘local jobs for local people’.

In 1997, with Sir Adrian leading the way, we went out to persuade individuals and companies to invest in their own back yard without the promise of a financial return but for a social return.

We raised £350K in three months from both local companies, such as IMI, Jaguar, Severn Trent and Wesleyan and from national companies, including all the major banks (some investing more than others).

Individual social investors, investing from £250 to £20,000, were also at the forefront of this new idea.

18 years on and, much I believe to some investors’ amazement, we still have all their money intact and it is still being reinvested in businesses unable to access finance from the banks. 

We now lend in the whole of the West Midlands and have provided more than £18m in loans.

The initial investors’ funds have encouraged others to invest over the years – including the public sector at national, regional and local level. Their funds encouraged the private sector to invest commercially with loans, which have all been successfully serviced and many repaid.

In recent years substantially increased funding has been made available from national public sector funds (Regional Growth Fund) but this source has ceased (budget cuts).

In a full turnaround we, like others across the country, are being encouraged to seek funds locally. One of the questions to be answered is from whom? It appears we might be coming full circle, but within the framework of a new world for investors of tax reliefs and alternative funding sources.

We are open to investment of all kinds, from individuals and companies to local authorities and local enterprise partnerships keen to support our work and ensure that viable growth businesses that are supporting the local economy can continue to thrive. 

For further information about investing in, or borrowing from, ART see http://www.artbusinessloans.co.uk/.