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Loan fund appoints new Fund Managers

23 September 2009

A £10 million investment fund to help South West businesses has announced the appointment of new Fund Managers.

The South West Loans Fund, which was set up by the South West RDA (Regional Development Agency) in April, has named SWIG (South West Investment Group) Services and Finance Cornwall Fund Managers Ltd as its permanent Fund Managers.

The appointments follow an interim six-month arrangement which saw the Fund managed by YFM Group. The new contracts will last until December 2015.

SWIG Services will manage small loans of up to £50,000, and Finance Cornwall Fund Managers will manage loans from £50,000 up to £250,000, under the brand name Ascendant Ventures.

Stephen Peacock, Executive Director of Enterprise and Innovation at the South West RDA, said: "We're delighted to have appointed such experienced regional fund managers to help viable businesses access investment through the South West Loans Fund. Securing growth finance is still an issue for many businesses and we hope that having two fund managers will accelerate the pace of investment."

The South West Loans Fund is overseen by South West Investment Group (Capital) Ltd whose Executive Director John Berry said: "The fund continues to see strong demand with over £1m of investment now approved for a range of businesses across the South West. I would like to thank YFM Group for their excellent work in getting everything up and running so well."

The South West Loans Fund is funded by the RDA (£3.75m) and the European Regional Development Fund through the ERDF Convergence Programme in Cornwall and the Isles of Scilly (£3.75m) and the ERDF Competiveness Programme for the rest of the region (£2.5m). It delivers two of the government-funded Solutions for Business products: 'Small Loans for Business' and 'Finance for Business' loans for the whole of the South West of England.

Carleen Kelemen, director of the Convergence Partnership Office, said: "These are unprecedented and challenging economic climes.

In today's post credit crunch economy, the availability and cost of credit are very different since 2008. Financial instruments play a key role in economic regeneration and this loan fund is one of a number of business support Convergence products to assist higher value growth businesses."

Peter Casey, Managing Director of SWIG Services said: "SWIG Services has an unparalleled track record in delivering gap loan finance to firms in the South West. We are keenly aware of the market demand for this Fund which will secure the package many local firms need for growth and I am delighted that we will be able to help fulfil that demand going forward."

Robert Seymour, Managing Director of Finance Cornwall Fund Managers said: "The South West Loans Fund is an important initiative to support growth-oriented SMEs in the South West and full credit must to be given to South West RDA and South West Investment Group (Capital) in establishing this valuable source of funding for SMEs. I am delighted that Finance Cornwall Fund Managers has been selected as fund manager and look forward to delivering our part of the fund as Ascendant Ventures in partnership with Business Link and other delivery agencies."

Since it was launched the South West Loans Fund has received more than 270 enquires and over 80 applications have or are being progressed.

Businesses interested in funding out more about the loan fund should contact Business Link on 0845 600 9966 or visit http://www.businesslink.gov.uk/southwest/.

Ends

For more information contact Jason Clark, on 01208-77900 or via jason.clark@dca-pr.co.uk

Notes to Editors

1. The South West RDA leads the development of a sustainable economy, investing to unlock the region's business potential. It works in partnership with public, private and social purpose organisations to drive up the region's productivity by giving people the skills they need, encouraging enterprise, improving infrastructure, regenerating places, and promoting the strengths of the region.

2. South West Investment Group (Capital) Ltd is a subsidiary company of South West Investment Group Limited a company limited by guarantee. It is a Fund holding company and was selected by the South West RDA in March this year, after competitive tender process, to operate the South West Loans Fund.

3. South West Investment Group (Services) Limited is another subsidiary company of South West Investment Group Limited and is a Fund Management company which operates independently of to its sister company SWIG Capital; with separate directors, staff and control systems.

4. SWIG Services is a not-for-profit company established in 1989 which has managed over £10m of investments in more than 650 businesses across the region to help them start or expand their operations. This has been possible with support from a number of local authorities throughout the region, including Cornwall Council and Devon County Council, the Objective 1 and 2 European programmes, the Phoenix Fund, the Single Regeneration Budget and Lloyds and Barclays Bank.

5. Set up in 2004, Finance Cornwall Fund Managers delivered investment for both Finance Cornwall, the £20 million venture capital and loan fund backed by Objective 1, Cornwall Council and Barclays Bank and covering Cornwall and the Isles of Scilly, and for Finance South West, the £18 million venture capital and loan fund backed by Objective 2, Barclays Bank and Finance Cornwall and covering Devon, Somerset and Bristol. Finance Cornwall invested more than £18 million in 135 businesses and Finance South West £15 million in 107 businesses in the region, safeguarding a significant number of permanent jobs, supporting the creation of new jobs, and drawing in a large amount of additional investment in the region.