Chamber and RBS’ in SME funding plan
A PARTNERSHIP to help solve the problem of financing for small businesses in being launch this week.
Greater Manchester Chamber of Commerce is teaming up with Royal Bank of Scotland and NatWest for the launch of an innovative business finance initiative, which will provide loans of between £3,000-£50,000, as well as business support services, to small businesses within Greater Manchester who have been unable to secure loans from mainstream sources.
It is hoped the scheme will support or create 3,500 private sector jobs in the area.
If a bid to the Government’s new Regional Growth Fund for £8m is successful, it is hoped that the new initiative will have £13m in its coffers.
The Chamber’s partner company Manchester Solutions has committed £3m to the scheme, while £2m is being sought from the European Regional Development Fund.
While not committing any direct funding to the scheme itself, RBS and Natwest are seconding staff to the programme and promoting the initiative to SME companies through its network of business and commercial banking centres, across Greater Manchester.
Endorsed by Business minister Mark Prisk, the launch will take place on Wednesday at the offices of law firm Addleshaw Goddard.
The group chief executive of RBS, Stephen Hester, will be attending, along with Ron Mason, chairman of Business Finance Solutions and Keith Johnston, a board member of Greater Manchester Chamber of Commerce, partner at Addleshaw Goddard and recently-appointed board member of the Greater Manchester Local Enterprise Partnership.
Paul Breen, fund manager for Business Finance Solutions, said: “This is a unique alternative business finance concept delivering what the local business community in Greater Manchester really needs.
“Without the support from RBS, this would be difficult. In this groundbreaking partnership, RBS will be working alongside the Chamber as strategic partners and, through the loan and business support package, will be able to create or safeguard approximately 3,500 private sector jobs, through a revolving loan fund not dependent on public funding.
“The aim is to fill the current ‘gap’ in the market to create cost-efficient business growth, meeting core Government policy objectives.”
Tony Kelly, managing director of NatWest commercial banking in the North West, said: “We are fully supportive of the Business Finance initiative and are delighted to have the chance to be involved from the outset. SME businesses form the backbone of Greater Manchester’s economy and it is therefore essential to find new ways to support their needs.”
