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Website URL : http://www.bexley.gov.uk/index.aspx?articleid=6971

31 July 2009 - New Enterprise Fund launched to help Bexley businesses

A new £307,500 loan and grant fund to support businesses in the London Borough of Bexley was launched last week (23 July), providing an additional source of finance to the Borough's small business community, during one of the deepest recessions in decades.

The Bexley Enterprise Fund, is a partnership between the Council, GLE (Greater London Enterprise) Group and the Thames Innovation Centre (TIC), and consists of a £250,000 loan fund and a £57,500 grant fund.

The fund is being created from £120,000 of regeneration funding secured by the Council plus an investment of £187,500 by the GLE-managed London Business Loan Fund.

Speaking at the launch, held in the Thames Innovation Centre, Councillor Linda Bailey, Bexley's Cabinet Member for Regeneration and Housing said: "The Bexley Enterprise Fund is a key part of the Council's efforts to try to help small businesses in the Borough weather these unprecedented economic conditions. For over a year, since the banking crisis hit the economy we have read and heard numerous accounts of the difficulties some businesses have had in securing finance from mainstream financial institutions. It was against this background that the Council decided it needed to try to do what it could to help."

The loan element of the fund will be managed by GLE's oneLondon division - the leading provider of non-bank finance in the capital. The grant fund will be managed by the London Borough of Bexley, with all enquiries and applications for both loans and grants being handled by the Thames Innovation Centre (TIC) which will also provide mentoring support to successful applicants.

Managing Director of GLE oneLondon, Nicholas Nicolaou said: "GLE oneLondon is delighted to be involved in this effort to support Bexley businesses in difficult economic times and we are looking forward to putting our considerable expertise and knowledge in loan finance to work to ensure this is a success, in partnership with the London Borough of Bexley and the Thames Innovation Centre."

Loans between £5,000 and £25,000 will be available at competitive rates of interest, with arrangement fees between 1.5% and 3% of the value of the loan. Both amounts depend on the trading period of the business. It is hoped the full £250,000 will be lent over the next 18 months.

Security may be required and is more likely to be a guarantee and or a debenture for limited companies unlike many mainstream providers of finance, who often require more tangible security such as a charge over a property.

Two types of grant will be available. A marketing grant of up to £500 and a premises grant of up to £5,000 for improving, securing or relocating to new premises.

GLE oneLondon's strong track record in loan fund management stands the Bexley fund in good stead, having made over 160 loans since March 2008 lending more than £3.5m to small businesses unable to raise finance from mainstream providers. Over the past 18 months GLE oneLondon has seen a marked increase in applications to the loan fund from existing businesses struggling to raise finance from mainstream providers.

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