Gwynedd Council is establishing an innovative local loans fund of £3 million to support local firms who are struggling to secure funding from banks.
The first fund of its kind in Wales – the Gwynedd loans fund will be open to small and medium sized businesses based in the county. The fund will provide loans of between £25,000 and £100,000 with the opportunity to borrow larger amounts provided it has been supported by relevant security.
Gwynedd Council Leader, Councillor Dyfed Edwards said:
“Small and medium sized companies are vital to the Gwynedd economy. By thinking creatively, and responding to what local companies have told us, Gwynedd Council aims to deliver the support that our traders require.
“This exciting and groundbreaking initiative shows that Gwynedd Council is committed to doing all we can to support local traders. The Gwynedd loans fund – the first of its kind in Wales – underlines the fact that we are willing to take practical steps to create the right environment in which local businesses can flourish.
“Indeed, this is the type of innovative measure is something that we as a Council are keen to replicate in other areas in order to make a difference for Gwynedd.”
Research carried out as part of Gwynedd Council’s 34-point ‘Responding to the Recession’ action plan found that local viable companies were finding it very difficult to secure loans from the banks during the tough economic climate. Indeed, the work confirmed that particular sectors, such as tourism and construction which are a vital part of the Gwynedd economy were finding it tough to secure loans
Councillor Dewi Lewis who leads on Economy and Community for Gwynedd Council added:
“The financial climate remains very challenging for our local firms, so it’s vital that we as a Council do all we can to support the county’s entrepreneurs. This ambitious scheme shows that Gwynedd is leading the way to provide the help and support that local businesses require.
“Indeed the Gwynedd loans fund is just the latest in step in our strategy to empower the county’s business sector. We have worked closely with the Gwynedd Business Network, and we believe that this new and enterprising initiative will provide a very welcome boost for local firms.”
The Council has previously provided financial support for Gwynedd businesses such as Welcome Furniture who secured financial support from the Council in early 2009. The company are now repaying this loan, and currently employs over 100 workers at their Cibyn factory site in Caernarfon.
“The success of the Welcome Furniture company shows what we can achieve when the Council takes practical steps to support the business sector,” added Council Leader, Councillor Dyfed Edwards.
“We were delighted to be able to help the company at what was a difficult time, and it is great news that the latest figures show that the business is thriving.”
The Gwynedd local loans fund will be in place by the beginning of the 2011/12 financial year. Businesses who want to find out more about the fund should contact Gwynedd Council’s Business Support Service on 01286 679778 or email: [email protected]
