Finance for small businesses
Venture Capital and Loan Funds
Publicly funded Venture Capital and Loan Funds (VCLFs) provide finance to help SMEs' start-up and growth, additional to existing commercial sources of finance through banks and other private sector investors. From now on VCLFs will be overseen and managed nationally (excluding in London) by Capital for Enterprise Limited (CfEL), the Government’s centre of expertise on SME finance interventions. Delivery of the funds – fund management, referral and investment decisions – will remain sited in the areas that the funds are commissioned. All newly commissioned publicly funded VCLFs will require consultation with CfEL before they are approved by BIS and HM Treasury.
The national oversight structure will need to be supported by local engagement and input. LEPs and other regional stakeholders can have a role in forming local strategies, providing insight into the needs and priorities of businesses in their areas. Channels for such engagement will be developed and this site will be updated with information on them from July 2011.
Contact
Paul Lewis (020 7215 3141)
Smaller business loans
Community Development Finance Institutions (CDFIs) are independent financial institutions which lend money to businesses, social enterprises and individuals who struggle to get finance from high street banks and loan companies. They help deprived communities by offering loans and support at an affordable rate to people who cannot access credit elsewhere.
One of the main focuses of CDFIs’ work is the creation of enterprises at a local level, often in deprived areas. We are therefore keen to encourage CDFIs and LEPs to work together on encouraging enterprise in disadvantaged areas. Further information on CDFIs can be found on the CDFA website.
Contact
Robert Freeman (0114 207 5082)
