New fund launched to help SMEs in the North West

The £35 million North West Fund for Business Loans is aiming to give a lifeline to small firms who are finding it tough to secure lending from banks.

The new fund is one of six that have been set up by the North West Fund (NWF), over the last few months in a bid to offer a total of £184.8 million to small and medium-sized enterprises (SMEs) over the coming five years.

The funding, which will be awarded to SMEs in the form of loans and equity investments, will make 'debt investments' of amounts ranging from £50,000 to £250,000.

FW Capital, which is managing the fund, said that gaining the funding 'would not be an easy touch.' The firm's Gary Guest – who will be overseeing the funding in the North West - confirmed that, “Applicants will need to demonstrate a robust business case.”

Mr Guest told LDP Business, “Obviously, at the moment, the banks are being cautious. We have £35 million and we will be lending it.

“However, we will approach the assessment of applications on a commercial basis. We are there to support growing, profitable businesses and we are looking for a return,” he added.

Chief executive of NWF, Andy Leach, said, “This element of The North West Fund has a very important role to play as the region’s SMEs grow into the recovery.”

The fund will have bases in Manchester, Preston and Liverpool. Forty per cent of the total cash has already been set aside for SMEs based in Merseyside.