Funding boost for start-ups
TWO South Yorkshire enterprise funding organisations have joined forces to provide microloans to start up and existing businesses in the region.
The partnership between South Yorkshire Investment Fund (SYIF) and Donbac means small and medium sized enterprises across the region, which are unable to raise all or part of the finance they need from their bank, will have access to funds.
Donbac’s ‘microloan’ can provide new start up businesses or those trading for up to six months with loans between £1,000 and £5,000. Businesses that have completed six months of trading are eligible for loans of up to £15,000.
Similar to SYIF’s partnership with the BiG Business Loan Fund in Sheffield, the Donbac Microloan will target people across the rest of South Yorkshire who struggle to raise funds from banks because their venture is too early-stage or they may have experienced problems with poor credit history.
SYIF will distribute the loans and collect repayments while Donbac will assist with the completion of the loan agreements.
Funding boost: (l-r) Angela Allison, executive director at Donbac; with Patrick Gillespie, of www.adoptajellybaby.com; and Fiona Greaves, SYIF loans manager.
Tony Goulbourn, chief executive of SYIF, said: “It is a significant step for small enterprises in South Yorkshire that they now have wider access to microloan funding to help them establish.
“In the current climate, economic factors will impact upon small businesses’ ability to get financial backing. The Donbac Microloan can provide a way around that.
“Donbac is an organisation with a rich tradition of successful investment and this partnership is another great opportunity for SYIF to support sustainable business growth and increase the success rate of locally-owned companies in the region.”
The Donbac Loan Funds were established in the late 1980s with £2m funding from British Rail to help the local economy and provide accessible lending for start up businesses in Doncaster.
Donbac is an authorised lender and continues to supply secured loans of £15,000 and over plus equity packages to busineses.
Angela Allison, executive director of Donbac, said: “The coming together of two large-scale secondary lenders can only be good news for the small businesses and entrepreneurs in South Yorkshire.
“The credit crunch means it is a tough time for SMEs but this partnership puts us in a stronger position to continue supporting enterprise and regenerating the economy.”
South Yorkshire Investment Fund can provide seedcorn, loan and equity linked investments, ranging from £15,000 to £2.5m, specifically to help small and medium businesses meet the gaps in funding they need for growth and development.
