Member Article

Eden Council supports £500k fund to help local business

District Councillors agreed to support the setting up of £500k fund to assist with business expansion and development in Eden District.

The new Eden Business Support Fund is designed to support local businesses that are looking to expand and develop, but may have struggled to get the backing from mainstream lenders, so have had their growth and job creation plans stifled.

The Council’s partnership with Enterprise Answers will see each party contribute £250k to create a specific Eden Fund to support local business expansion.

Enterprise Answers is a Community Development Finance Institution (CDFI).

CDFIs lend money to those unable to get all or part of the finance they need from high street banks.

Enterprise Answers is Cumbria’s only CDFI and the only rural one operating in the North of England.

It had over 40 loan enquiries within Eden last year, and 12 loans were provided.

Business applying for a loan would be expected to demonstrate through a business plan how they intend to grow and develop their workforce and illustrate the remuneration proposals upon completion of individual training.

Enterprise Answers would undertake the administration of the fund and the loan appraisals.

Eden District Council’s Planning and Economy Portfolio Holder, Councillor Malcolm Smith, said: “Accessing finance is the lifeblood businesses need to expand and create higher paid jobs.

“Sadly, the Council is only too aware of many instances where well established local businesses have struggled to access the credit they needed to expand and operate successfully.

“It is one of our corporate priorities to help create a higher wage local economy which is recognised in key documents such as the Draft Eden Local Plan 2014-2032.

“The Council is contributing £250k to create a joint business support facility with Enterprise Answers who in turn are matching the fund to create a £500k pot of money which local businesses can apply to support their growth and development plans.

“I really hope businesses take advantage of this opportunity as this funding may help give local businesses the competitive advantage they need.”

Chief Executive of Enterprise Answers Grahame Latus, said: “We are very pleased to engage with Eden District Council on this initiative which is the first of its kind in Cumbria.

“Eden is a very active region for us which is a reflection of the business culture within the area and we are keen to work with the Council to further develop opportunities to help businesses grow, expand and create rewarding employment opportunities.”

This was posted in Bdaily's Members' News section by Sophia Taha .