£40m loan fund launched to fuel SME growth
A £40m investment fund to support SMEs has been launched by Santander, Enterprise Ventures and the Greater Manchester Pension Fund.
The Enterprise Ventures’ SME Loan Fund, which is funded by £30m from Santander and £10m from Greater Manchester Pension Fund, will provide up to £1m to help small firms fuel growth. The loans will be available to established and ambitious SMEs in all sectors and in all areas of the UK, building on Enterprise Ventures’ strongholds in the North West and Yorkshire and Humberside.
The launch of the new fund brings Enterprise Ventures’ total funds under management to £200m.
Chief executive Jonathan Diggines said: “Enterprise Ventures SME Loans represents a significant new institutional source of investment into the SME market, one which is not subject to the constraints of other Government and European funds.
“We recognise the important role that small businesses play in providing services and employment within local communities, developing new ideas and technologies, and strengthening regional economies.
Enterprise Ventures SME Loans are available now to established businesses anywhere in the UK which have been trading for three years or more and which have current or anticipated £100,000 operating profit and a minimum turnover of £1m. Loans will be available for all purposes, including acquisitions, asset purchases, operational improvement and business development.
Santander’s investment is part of its Breakthrough initiative, a suite of financial and non-financial services and products designed for SMEs.
Damian McGann, North of England managing director at Santander UK Corporate & Commercial, said: “SMEs need access to multiple sources of finance, our support of Enterprise Ventures allows us to fill a gap in the market and provide a breadth of innovative solutions for all ambitious SMEs.”