Loan Fund provides boost to Shropshire businesses

Fourteen new jobs are set to be created and a further 28 jobs saved after £200,000 was awarded to eight Shropshire firms under Shropshire Council’s small business loan fund.

Created by Shropshire Council and Impetus in August 2012, the fund has made up to £2 million available to provide alternative business investment for enterprises located in the Shropshire area who would, or have, encountered difficulties in securing loan finance via traditional sources, such as the banks.

Business loans from £5,000 up to £50,000 are available with flexible terms for people who wish to start a small business, intend to invest in business expansion to create new jobs, want to safeguard and retain local jobs, or who have been turned down for a loan by a high street lender.

The firms that have received funding so far are a mix of manufacturing and service sector businesses located across Shropshire, including an Internet marketing firm, an electrical engineer, and an accountant.

Each borrower must offer assurances that they are in a position to repay any loan made, and must first submit a business plan which is realistic about what is likely to be achieved over the coming months and years.

Mike Owen, Shropshire Council’s Cabinet member for business growth and prosperity, said:

“Shropshire Council is committed to supporting business growth and prosperity in the county.  Launching this new loan fund with a commitment of £1 million from Shropshire Council demonstrates how much we value the vital role small businesses play in Shropshire’s economy.”

Impetus works throughout Telford and Wrekin, Shropshire, Herefordshire and Worcestershire to help the local economy grow and thrive by providing funds to develop new work and job opportunities.

To find out more, go to shropshire.gov.uk/business.