Capital Development Loan Fund

'Funds to to expand your business'

Summary (up to 50 words but prefer max. 30-35).

Organisation:

Completion Date: 10/05/2004

Location

Leicester and Leicestershire

Project Description

The Loan fund project seeks to consolidate the existing loan funds available through Business Link Leicestershire into a single stream and enhance the resource available to SME's, by doing so we are providing SME's the oppertunity to gain greater fund so they can expand their businesses.
Eric Carveth

BACK GROUND
The loan fund project seeks to consolidate the existing loan funds available through Business Link Leicestershire into a single stream and enhance the resource available. It is hoped this approach will streamline the administrative processes involved in dealing with loan applications and lead to a more efficient method of delivering the loan funds. With an increased pot of money available, more SME’s will be able to access the funds and expand their businesses.

BARRIERS
The Inner City Loan fund and the Rural Loan fund have been in existence for some time however due to the percentage of non-repayment of loans, the amount of money available in the funding pots has reduced overtime. Additional resource will ensure continuity of availability. The risk and therefore percentage default rate on the loan funds is higher than average due to the nature of the client base – in most cases these loans are granted where institutional lending has not been possible due to the clients high risk rating.

SOLUTIONS
This project seeks to provide additional resource to the loan funds and by channelling the loans into a single stream simplify the application process. Without the extra funding, the loan funds would expire within the next 18 months due to lack of resource. This would have an impact on SME’s in Leicester and Leicestershire who need small capital grants in order to grow

SUPPORT
Business Link Leicestershire’s client management system, Linktrack, will enable the project staff to monitor assisted SMEs and provide monthly monitoring reports on outputs during the life of the project. The system will also enable the staff to follow up the impacts and results of the project and to monitor the numbers of people employed in each business supported by the project.

Ongoing consultation with participating SMEs is a key element of the monitoring plan for this project. This will help to ensure that they continue to receive the support they need to develop and grow in line with the aims of the project. Business Link Leicestershire will also undertake bi-annual consultation exercises with SMEs receiving support

Outcomes

• This project will expand upon an important element of financial support that is needed to enable new and pre-start businesses in Leicestershire to develop and expand.
• The consolidated loan funds will put in place the financial support needed by many SME’s and will be delivered by an organisation with a track record of delivering outputs and value added services to their client base.

The project aims to:

The primary aims of the project are to

• Increase business survival rates
• Increase business competitiveness
• Increase business growth through the loan funds

Project Contacts

Project manager:
Eric Carveth
Tel: 0116 255 9944
E-mail: Eric.carveth@blleics.co.uk
Website: www.blleics.co.uk

LSEP contact:
Niloofar Sarkari
Tel: 0116 257 5678
E-mail: niloofars@lsep.co.uk
Website: www.lsep.co.uk