Advantage West Midlands today announced that it is topping up the Advantage Transition Bridge Fund (ATBF) to a total of £9 million to help regional businesses which are having difficulties obtaining credit during the economic crisis.
The ATBF has experienced a very high level of inquiries from companies in the West Midlands since it was first launched by Business Secretary Lord Mandelson in Birmingham on November 14.
Seventy applications have been received to date and so far, 15 loans have been approved totalling £2.3 million. Six companies, including two automotive suppliers, have drawn down £0.7 million, safeguarding around 500 jobs.
Five SMEs in Birmingham have received loan approvals from the ATBF, five in Herford and Worcester, three in Coventry and Warwickshire, one in the Black Country and one in North Staffordshire.
The ATBF is based on the successful loan rescue package established in the wake of the MG Rover collapse at Longbridge in 2005, which threw a cash lifeline to MG Rover’s supply chain companies.
In the current economic crisis, viable companies which are having problems obtaining credit through banks and other mainstream providers can apply to the ATBF for loans of between £50,000 and £250,000.
Dr Richard Hutchins, Corporate Director for Economic Development at Advantage West Midlands, 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.
“Despite the volume of inquiries, the teams at the Advantage Transition Bridge Fund have been working tirelessly to process the applications - and I’m delighted that they have approved 15 loans so far.
“But this is only the start – there is a lot more work to do to make sure that SMEs get the short-term finance they need to sustain and develop their businesses during the credit crunch.
“Today’s announcement of an additional £5 million to the ATBF as a response to the demand will not only help more businesses get that short-term finance, it will also help ensure that the region’s economy as a whole is in good shape when we emerge from the downturn.”
Minister for the West Midlands Ian Austin MP said: “Businesses in the region need a government that is on their side doing everything it can to get them through the downturn.
“I've met hundreds of businesses and they all tell me that that access to finance is still the number one issue, so I am really pleased that Advantage West Midlands have acted quickly to boost the funding of this scheme.”
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
The ATBF is in addition to the range of finance schemes currently offered by Advantage West Midlands. For more information visit www.advantagebridgefund.com or www.advantagewm.co.uk