Cable visits Birmingham firm as £60m support package for SMEs anounced

THE Government announced a £60m small business support package yesterday, to coincide with a visit by business secretary Vince Cable to a factory in Birmingham.

Cable was visiting Tyseley kitchenware firm Utensa – a firm that has already benefited from a small business loan.

The £60m support package will be through a £30m investment from the Regional Growth Fund and matched funding from the Co-operative Bank and Unity Trust Bank into the Community Development Finance Association (CDFA). The CDFA will use the money to provide lending to small, micro and social enterprises.

According to the Government, the funding is expected to create or safeguard more than 8,000 jobs over six years across the country.

Cable visited Utensa to find out how it is faring as it has already received a loan from the Aston Reinvestment Trust (ART) – a community development finance institution (CDFI) and member of the CDFA.

The £30,000 loan has helped Utensa develop its manufacturing facility to improve its competitiveness with the Far East as well as safeguarding jobs for the future and creating jobs for two new machine operators at the company.

The visit was followed by Cable giving the keynote speech at the CDFA’s annual conference in Solihull where the business secretary set out the important role that CDFIs have in providing credit to under-served markets.

He said: “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 £60m goes to those SMEs, such as Utensa in Birmingham, that will create jobs and unlock private investment.

“Regional Growth Fund programmes like this one have already awarded SMEs over 500 grants and loans across the country. This is an excellent way to get value for money, but more importantly, it is a good way to focus on local priorities for growth, as most programmes are led by local partners.

“RGF is leading the way in rebalancing the economy and boosting business and industry.”

Steve Walker, chief executive of Aston Reinvestment Trust, said: “With this support from the RGF, we look forward to helping hundreds more small businesses in Birmingham and Solihull to protect or create jobs. 

“We are here to support businesses that are unable to access any or all of the finance they need directly from a bank, whatever sector they are operating in.  Our remit is to help to boost the local economy.”

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.

“I can’t speak too highly of ART. The speed and efficiency with which they dealt with our application was surprising and very welcome. They understood our needs and were interested in our business.”

Of local lenders, BCRS – formerly the Black Country Reinvestment Society – has secured more than £12m from the funding package, for loans of between £10,000 and £100,000.

Its chief executive, Paul Kalinauckas, said; “It is fantastic news to hear that BCRS will continue to have the opportunity to support local companies thanks to RGF and even more so that we can now lend up £100,000.”

It is understood that Aston reinvestment Trust will receive £4.8m over three years.