South West Loans Fund

A loan scheme supporting business growth within environmental limits

The South West Loans Fund is designed to support viable growth businesses in South West England that have been unable to secure finance from conventional sources.

The £10million fund has been made available through the Cornwall and the Isles of Scilly Convergence Operational Programme ERDF 2007-2013 and the South West of England, excluding Cornwall and the Isles of Scilly, Competitiveness and Employment Programme ERDF 2007-2013.

Finance available
The Fund offers two loan products:
Finance for Business for loans of up to £250,000. Standard loan amount up to £125,000 (with up to £250,000 available in exceptional circumstances).
Small Loans for Business for loans of up to £50,000

Summary of key elements

Maximum amount - £250,000 or £50,000
Maximum term of loan - 5 years
Security - Security will be taken as appropriate to the risk profile of the individual proposition. Leverage of other funding may be desirable depending on the size of loan sought
Arrangement fee - 1% of loan amount payable up-front (minimum £75)
Monitoring fee - 1% per annum
Security fee - Valuation and legal fees, where applicable, will be payable up-front
Management support - Taking up Business Mentoring and/or other management support services will be required as appropriate
Multiple applications - Will be allowed provided that amount outstanding at any time to any business or group of companies does not exceed £250,000

Who can apply?
To be eligible to apply for a 'Small Loans for Business' or a 'Finance for Business Loan', businesses must be based in the South West of England (or intend to imminently relocate to the South West) and:

be a Small or Medium Sized Business
be engaged in an activity that is not ineligible (see below)
be solvent with a track record of business growth or having growth potential
have a viable business plan
have or be ready to appoint professional advisers appropriate to their plans
have evidence that neither part nor all of the finance can be obtained from private sector sources
not be replacing existing private sector finance
have appropriate Environmental, Health and Safety, Equal Opportunities and Disability Policies/Statements in place. The proposal needs to evidence the social and environmental impacts which will support the development of an environmentally sustainable economy in the South West of England

For more information
Initial enquiries should be made through Business Link who can advise on eligibility and take you through the first stage of the application process. They can also provide further information on this fund and other potential sources of finance. If you wish to proceed please either:

Complete the enquiry form - Opens in a new window
Email Business Link
Call 0845 600 9966

Delivery Partners
The South West Loans Fund is controlled by South West Investment Group (Capital) Limited and managed by a Fund Manager

Ineligible sectors
Businesses operating in the following sectors may not qualify (for more information contact your Business Link adviser):

Major infrastructure in ports
Speculative building
Coal and Steel
Property Investment
Banks and insurance companies
Production of synthetic fibres
Agriculture
Provision of local social welfare facilities
Proportion of public expenditure incurred in land acquisition not directly linked to productive investment or investment in infrastructure
Establishments providing generalised (school age) education
Certain retail operations
Coastal protection, soil conservation and infrastructures

The fund, which will charge commercial fees and interest rates on its loans, will lend through to the end of 2015 (subject to availability). All loan repayments, fees and interest charges received, after meeting administrative costs, will be re-lent to other businesses in the region.

(Note: A Small or Medium Sized business is defined as having fewer than 250 employees together with a turnover of up to €50m or a balance sheet total of up to €43m).

Convergence