Birmingham Issues First of £11m Business Loans

By on 11/02/2010 in News

The first loans to be granted by Birmingham City Council in a new initiative to offer business loans direct to local companies unable to attract financing from the High Street Banks have today been announced.

A total of £800,000 has been granted to four local companies, all in a very diverse range of markets, but all intending to use to money to expand/diversify their business and in the process create or protect local jobs.

The loans are part of an £11m package of financing announced by the City Council last year to help companies with viable business plans who since the collapse in the banking industry have found themselves unable to access  bank finance which would have previously been  available to them.

Cllr Neville Summerfield, Cabinet Member for Regeneration, said: “All four companies are well established operations which offer great investment opportunities. Not only will these loans help them during these testing economic times, but will benefit local people through the creation and safeguarding of jobs.

“These are just the type of businesses these loans were set up to help, and if ongoing interest levels from further companies in our loan scheme is anything to go by, I am sure they will just be the tip of the iceberg as regards the support we are able to offer locally.”

The four companies to successfully apply for funding are:

Install Automation – £250k for Jewellery Quarter based business to  expand their company that  allows all household appliances, energy and heating systems to be operated through a single interface which also monitors energy use.

£250k toward expansion to European market of specialist technology developed by city centre based CCBT Ltd  that  helps treat people with neuroses including phobias, depression and obsessive compulsive disorders.

Digbeth-based animation and video specialists Big Button Media - loan of 200k to help bring new streaming product to market.

£100k loan to help Imaginative Minds in Digbeth expand their subscription service for a  range of magazines and books based in the educational sector.

Terms and conditions for each investment entered into by the City Council, including repayment periods, will differ from loan to loan, however are broadly in line with similar products currently available in the wider marketplace.

All four loans have been offered by working alongside Birmingham-based investment specialists Investbx, which is helping the Council oversee a £10 million fund to offer  business loans of up to £1 million for local businesses.

To help smaller businesses seeking investments of between £1,000 and £50,000 the council has set aside a further £500,000 to be delivered through fellow investment specialists ART (Aston Reinvestment Trust) and Arrow. This money will attract European match-funding of a further £500,000 through Advantage West Midlands, creating a potential loan fund of up to £1 million.

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  1. Tony Taylor says:

    Why is there no help for NEW businesses? None of this money is available unless you have been in business for 2 years!
    The interest rate appears to be 10 over base – with security – nearly credit card rates.
    We want attactive rate loans for NEW businesses – not help for the aged!

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