Loan funding available to build Warwickshire businesses
Warwickshire SMEs struggling to access loans to fund their growth have the chance to tap into a new package of funding worth £800,000 from Warwickshire County Council and Coventry and Warwickshire Reinvestment Trust (CWRT).
The small business loans programme is designed to help businesses access investment that will help them diversify or modernise their operations, leading to economic growth and job creation.
One firm reaping the benefits from a previous round of small business loans funding is Urban Civil Engineering Ltd (UCE) based in Offchurch, near Leamington Spa.
Set up by Adrian Duncan and Jason Green just two years ago, UCE now has grown from six members of staff to a 50-strong team and turnover is expected to double from £3m to £6m this year.
The remarkable success of the business is set to continue with a roster of customers including well-established construction firms such as Persimmon Homes, AC Lloyd and Barwood Homes.
Adrian and Jason wanted to implement a rapid growth plan but when they couldn't access traditional funding they were referred to the Coventry and Warwickshire LEP Growth Hub. The Hub, which acts as a signposting and business advice service to companies, assessed the firm's initial needs and put them in touch with CWRT.
That led to an initial loan of £50,000 in the first year - which was paid back in full - with a further £70,000 that followed in the current financial year. The funding, vital to the firm’s success, has most recently included a £25,500 loan for the purchase of equipment from the county council’s Growth Fund as part of the wider £70,000 funding package provided by CWRT.
UCE Operations Director Adrian Duncan explains: “The advice and support from the Growth Hub has worked wonders. We needed the finance to be able to have enough cashflow to be able to buy materials as it takes some time to build credibility with a supplier."
"Growing a business like Urban Civil Engineering is exciting but challenging. The financial support from the county council and CWRT has been vital and only possible because CWRT has invested time and effort in understanding what we are trying to achieve.
"Their local knowledge and the fact that they are all about helping businesses in the area to grow has been key to this.”
Now more SMEs across Warwickshire are able to apply for loans worth £1,000 to £75,000. The loans form part of a £2 million package of support approved by Warwickshire County Council.
Successful applicants will need to demonstrate how the cash would directly create new jobs in the county or protect existing employment. The cash can be used by businesses looking to expand their operations, increase their working capital, obtain new premises, purchase new machinery or equipment or for recruitment and marketing purposes.
Leader of Warwickshire County Council, Cllr Izzi Seccombe, said: “This is another fantastic opportunity for local firms and I encourage as many local SMEs as possible to take advantage of it and make an application. We are doing all we can to supply finance to our SMEs who have growth ambitions, but who are having difficulty accessing loans to fund that growth.
"The county council will also launch a new round of grants through our small business grants programme later in the year. Despite the obvious uncertainty following Brexit, the council is sustaining and, where possible, increasing its commitment to supporting local companies.”
Andrew Scarborough, Loans Manager at the Coventry and Warwickshire Reinvestment Trust, said: “We are delighted that local businesses will continue to be able to access much needed funding through our joint work with Warwickshire County Council.
"The small business loans programme is an imaginative yet straightforward loans initiative which targets those organisations looking for financial help to implement capital investment projects. Loans up to £75,000 are available. To find out how we can help please visit our website at www.cwrt.uk.com or call us on 024 7655 1777."