Lloyds pledges additional funding support for SMEs by tapping into RGF

LLOYDS is working with the Government’s Regional Growth Fund to launch a new scheme designed to improve access to finance for growing SMEs.

The ‘Assisted Asset Purchase Scheme’ draws on the RGF to provide grants for businesses that are able to create or protect jobs, but would not normally be eligible for bank funding due to a lack of deposit. Businesses are then able to use the grants as deposits for the assets that they wish to buy.
 
Each Government grant provided to a business will be supported by additional funding through a Lloyds TSB Commercial hire purchase or term loan.
 
In order to qualify for a grant under the scheme, businesses will need to demonstrate they do not have the necessary deposit and they are able to commit to creating and retaining jobs for a minimum of 12 months, or protecting jobs that would otherwise have been lost within 12 months.  At least one job must be created or protected for every £15,000 of grant received.
 
Dave Atkinson, Area Director for Lloyds TSB Commercial Banking in the West Midlands, said: “We are committed to helping the UK economy prosper and see it as essential that we use all tools available to provide adequate resource to help businesses create and protect jobs. By launching this scheme we are able to offer competitive funding to UK businesses so that they can purchase the appropriate assets in order to further develop and grow.”