NatWest and RBS double leisure fund after strong demand
LEISURE businesses in Yorkshire can tap into a further £150m of funding from NatWest and RBS as the banks double the fund they set up to support the sector.
The Leisure Fund has now been extended to £300m and continues to be made available to SME leisure firms to encourage reinvestment and growth.
The additional cash comes after the bank has already allocated all of the £150m originally pledged since its launch at the end of May. However, Yorkshire has seen less interest in the fund than many other areas and the bank said it is keen to hear from businesses in the region that are looking to invest.
Andrew Taylor, head of Leisure for Commercial Banking at NatWest and RBS, said: “From day one this fund has attracted incredible interest.
“We listened to the needs of our leisure customers and designed the fund specifically to support the needs of this particular industry. Its success so far proves the real desire for investment and growth and we are dedicated to continuing our support of leisure businesses.
“The fund has now been running for 20 weeks and we have agreed over 250 loans totalling some £160m. Given lending in the equivalent 20 weeks of 2012 was around £60m this is an incredible step forward which proves that confidence is returning and that NatWest really is supporting SME clients across hotel, restaurant and pub businesses.
“It is also really encouraging that the funding has not just gone to a handful of large businesses, but to a wide range of clients around the country totalling over 260 loans.”
Hotels have generated the largest demand for the fund so far, borrowing around £90m, followed by restaurants and pubs, according to the banks.
Taylor added: “Generating around £97bn of GDP and around 2.2m jobs, the industry is vital for the UK economy and we are dedicated to supporting leisure businesses across the UK.”
Sharon Lowther, leisure specialist in the Yorkshire area for NatWest, said: “The whole of the leisure industry is excited in preparation for the Tour de France visiting our county next month and we want to do more for the sector here. I’d urge any business looking to invest now and into 2014 to get in touch with us to see what we can do.”
NatWest and RBS’ Leisure Fund has received government support with Helen Grant MP, Minister for Tourism, backing the campaign.
Grant said: “The tourism sector has a major part to play in our economic growth strategy, as it supports local jobs and businesses across the country. It is great to see such positive take-up from the NatWest and RBS Leisure Fund and a further £150m being added with many hotels looking to benefit and drive growth. I hope the scheme continues to go from strength to strength.”
National tourism body Visit England has been closely involved in the development of the Leisure Fund.
Visit England’s chief executive, James Berresford, said: “It is great to see that leisure businesses across the country are taking advantage of this opportunity.
“We worked closely with NatWest and RBS on the creation of the fund. It is vital that our tourism businesses have the opportunity to invest in their products if the industry is to thrive and grow. The positive take up of the fund so far demonstrates the industry is hungry to invest and I am delighted that NatWest and RBS has taken such steps to help support the leisure industry.”
The fund was launched earlier this year after RBS/NatWest research showed that one in four leisure businesses felt they were losing out due to lack of investment. The fund offers fee free loans and an option including two six-month repayment holidays to accommodate the seasonality of many leisure enterprises and to allow breathing space for contingency planning.
