A new £500,000 scheme to help set-up and grow small businesses across Coventry and Warwickshire has been launched.
The Coventry and Warwickshire Small Business Loans Scheme aims to lead to at least 40 new jobs and safeguard a further 80 in the sub-region over the next two years.
Small loan specialists the Coventry and Warwickshire Reinvestment Trust (CWRT) will run the project to distribute loans up to a maximum of £50,000 to create new businesses, or expand or develop existing companies in Coventry and Warwickshire.
Coventry and Warwickshire Local Enterprise Partnership’s Access to Finance Business Group has identified the demand and need for this type of loan support for SMEs in the sub-region.
The scheme will be funded by a combination of funding from CW LEP’s Growing Places Fund (£250,000), Warwickshire County Council’s Going for Growth Fund (£125,000) and the Department for Environment, Food and Rural Affairs’ Rural Growth Network (£125,000).
John Latham, Deputy Vice-Chancellor at Coventry University, who is chairman of the Funding and Access to Finance Business Group at the CW LEP, said the aim of the Small Business Loans Scheme was to support 40 SMEs or new businesses and create 40 new jobs.
“The project has been designed to make money available to smaller businesses wanting to buy new equipment or expand their premises,” he said.
“It will also help to speed up the process of launching a new enterprise or expanding an existing business because we all want to see job creation and economic growth happening as quickly as possibly instead of being tied up in red tape.
“CWRT will manage the Small Business Loans Scheme after ensuring all the criteria to receive the money have been met.”
Cllr Alan Farnell, Leader of Warwickshire County Council, said: “As a county council we are investing £3.5m through our Going for Growth agenda to support Warwickshire businesses. One of the strands is access to finance, and we are pleased to be able to invest some of this funding in the Coventry and Warwickshire Small Business Loans Scheme. We are also pleased that DEFRA has earmarked further funding to target some of the support at rural areas.
“Small businesses are the life blood of our economy and it is essential that we do all that we can to support them – especially when many are finding it difficult to obtain a loan from a bank.
“With this fund we hope to see more new businesses and jobs being created, existing companies expanding and contributing to a growing economy.”