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| County Councillor Mike Lawrence and Graham Rees with falcon. |
Staffordshire business swoops to take advantage of support fund
A Staffordshire company is spreading its wings thanks to the county council's new support fund for businesses.
Burntwood based Millenium Falcons is just one company thriving with county council support after banks snubbed its expansion plans.
The Staffordshire Business Support Fund was set up by the county council's cabinet last November and is already benefiting nine companies. The one million pound loan fund will help keep businesses afloat and protect jobs.
Millennium Falcons is a pest control company specialising in the use of birds of prey to tackle vermin.
Owner Graham Rees had a plan to expand his three-year-old business by taking on contracts in Birmingham and Sandwell. However, his bank turned his request for finance down.
"My local chamber of commerce suggested the Staffordshire Business Support Fund after we were turned down by the banks," said Graham.
The £25,000 loan has enabled him to take on another member of staff, increasing the business to five people plus 16 birds of prey.
"Although some of the new contracts are now are outside Staffordshire, everyone that works for us comes from within the county. We're a small business and it's important that we work closely together and draw from our local communities. And we're also supporting our local economy."
Small businesses across Staffordshire in need of financial support are now looking towards the fund as traditional sources have been particularly difficult to obtain.
A national survey published by the Institute of Directors this month has revealed that 57% of company directors who had applied to their banks for finance had been rejected. In addition, 83% of those declined finance from banks were not offered information on the Government's Enterprise Finance Guarantee scheme.
The national survey echoes the views of local businesses, which had prompted the county council to provide an alternative source of finance. On one hand, cash flow even to sound businesses was increasingly strained as a result of the recession. And on the other hand, banks were unwilling to lend as they strove to reduce their own liabilities.
The Staffordshire Business Support fund is being delivered by the Black Country Reinvestment Society (BCRS), a specialist not-for-profit lender established with the needs of small and medium-sized businesses in mind.
Staffordshire businesses with up to 50 employees can apply to BCRS for loans of £10,000 to £50,000.
Mike Lawrence, the county council's Cabinet member for Economy, Skills and Enterprise, said the need for quick access to finance is essential, particularly as other sources are difficult to obtain.
"The findings by the Institute of Directors this month underline the importance of the Staffordshire Business Support Fund.
"Businesses nationally are not finding the support they need from the banks and it's also evident that some are struggling to find the information they need on Government support.
"Our fund is accessible and as has made real difference to nine county businesses in its first three months.
"Many well-run businesses have been finding it increasingly difficult to stay afloat through the recession. Quite often customers may fail to pay on time, but suppliers still need to be paid. The ability to keep cash flow running will determine whether the business survives or fails - and if it fails, that means jobs lost.
"This partnership will pump public funding directly to supporting local businesses and retain local jobs at a time of great need."
Steve Grice from BCRS said: "We were really glad to be involved with the loan. The business is close to unique, and a great example of how the loan fund can help businesses thrive and grow."
Over 100 businesses have enquired about funding from the Staffordshire Business Support Fund with more loans being approved all the time.
Anyone wanting to find out more about the fund should call 0845 313 8410
Some facts:
• Loans are available to existing businesses within the Staffordshire area (excluding Stoke on Trent)
• Businesses with up to 50 people can apply
• Loans range from £10,000-£50000
• There are some exceptions - e.g. agriculture, house-building and retail businesses are not eligible for loans
• To find out more call BCRS on 0845 313 8410
• The county council invested £500,000 in the new Staffordshire Business Support Fund, which has been matched by a further £500,000 from the European Regional Development Fund, via Advantage West Midlands.
The Institute of Directors is a non party-political business organisation supporting entrepreneurs. It was founded by Royal Charter in 1903 and currently has around 55,000 members. The IoD surveyed of 1,045 directors, a quarter said that they had tried to access finance from the institutions that they banked with in 2009/10. Of this quarter, 57% of directors said that their application for finance had been rejected by their bank. This evidence contradicts claims being made by the banks that the majority of lending demand is being met.
Page Last Modified:
06/08/2010 15:25:19
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