Business leaders from over 100 companies across the region met at a special West Midlands Economic Summit in Birmingham today to discuss the current economic downturn with Government Ministers.
Ian Austin MP, Regional Minister for the West Midlands, was joined by Business Secretary Lord Mandelson and Mick Laverty, chief executive of Advantage West Midlands (AWM) to hear companies’ first-hand experiences of the credit crunch.
During the meeting, it was announced that AWM is to launch a £4 million Transition Loan Fund that will help to address the problems businesses are already facing in obtaining credit through banks and other traditional routes.
The fund will be based on the successful loan rescue package established in the wake of the MG Rover collapse at Longbridge in 2005. The Advantage Transition Bridge Fund threw a lifeline to MG Rover’s supply chain companies, making loans totalling £5.4 million, safeguarding around 1400 jobs.
The Transition Loan Fund will offer viable businesses loans of between £50,000 and £250,000 to help bridge the gap for small and medium-sized enterprises (SMEs) suffering short-term funding problems due to the current financial crisis.
The fund will be in addition to the range of finance schemes currently offered by Advantage West Midlands.
Minister for the West Midlands Ian Austin said: “The current economic crisis is the biggest challenge the region has faced. Small businesses are the lifeblood of our economy and it is vital we support them at this critical time.
“I’ve met businessmen from hundreds of SMEs over the last few weeks and many have been telling me we need a fund like this so they can get access to the finance they need.
“That we have been able to establish it so rapidly is evidence that the Government is on their side taking steps to help them through the downturn.”
Mr Laverty said: “The lessons we’ve learned from the past will enable us to take effective action today.
“Right now, one of the key messages from West Midlands business is the need to obtain working capital in the short term to sustain and develop business activities during the credit crunch.
“The Transition Loan Fund announced today is a response that will not only help businesses get that short-term finance they need, it will also help ensure that the region’s economy as a whole is in good shape when we emerge from the downturn.”
Businesses who think they may be eligible for support should contact Paul Wheeler or Norman Gascoigne at the Advantage Transition Bridge Fund.
Tel: 0121 200 8195
paul.wheeler@advantagebridgefund.com
norman.gascoigne@advantagebridgefund.com