Business Enterprise Fund receives £6m cash injection
THE Business Enterprise Fund (BEF) has received a £6m investment from the Regional Growth Fund (RGF) to expand its work in offering loans to SME’s unable to secure bank finance.
The secured cash will give hundreds of businesses across West and North Yorkshire greater access to finance.
BEF, a Bradford and Leeds-based social enterprise, is committed to helping the economic development of West and North Yorkshire businesses and has lent millions of pounds across the region since its formation eight years ago, providing a crucial lifeline to a host of different business.
The £6m funding boost completes a strong start to 2013 for BEF, which recently opened a second office in Vicarage Chambers, Leeds, expanded its team by 35% to 15 staff and opened its £2m city hub incubator office space in Bradford.
BEF director Stephen Waud, said the latest funding announcement, which has seen 75% growth in the last 12 months and has 100% growth planned for 2014, proves businesses can flourish across the region.
He said: “This is the first stage in our plans to treble the size of our business over the next three years.
“BEF has been instrumental in submitting a further bid to the Business Bank for a national £120m wholesale fund as demand for our assistance – and support from other similar organisations – continues to soar, despite bank SME lending remaining low.
“While the need for finance continues to grow, the gap between lending and demand remains huge with a recent survey showing that in the Yorkshire and Humber region, this is as much as £120m a year.
“Our aim is to lend to and support 200 businesses this year and we are determined to grow ourselves to meet the latent demand.”
A quarter of all BEF loans in 2013 have been made to businesses within Leeds and loans to North Yorkshire businesses account for over 30% of loans made.
Mr Waud said: “There are businesses out there which can really succeed but just need a helping hand to either get them off the ground or push them to the next level.
“While it may contradict some of the doom and gloom mongers out there, we strongly believe business in North and West Yorkshire is making positive strides and we will continue to support them in the best way we can.”
