Thames Valley: LEP commits £7.25m to support SME growth

The Thames Valley Berkshire Local Enterprise Partnership (TVB LEP) is committing £7.25 million of capital to create a new Escalator Fund, which will offer finance to SMEs that can deliver growth, in line with the remit given to LEPs by government. The LEP said the move was part of a balanced strategy that focusses on strategic infrastructure; employment and skills; and aims to develop the next generation of businesses that can contribute to job creation and the prosperity of the sub-region.

“The Escalator Fund is our response to the feedback from business across Thames Valley Berkshire during many months of consultation across the sub-region. It is designed to provide finance to a range of businesses from start-ups to the more established, looking for funding which is difficult to obtain from more traditional sources. Only businesses that are viewed to have the potential to deliver significant growth and employment opportunities for Thames Valley Berkshire will be considered, as this scheme is all about growing and empowering the local economy” commented Steve Lamb, chairman, TVB LEP.

The Escalator Fund is an initiative led by TVB LEP. It comprises a series of repayable loans and will be live from February 1:

£1.75m has been allocated for the TVB Commercialisation Fund – to support newly established companies that need limited support to enhance their market position;

£4m for the TVB Expansion Fund – to support development to scale up a business and accelerate growth;

£1.5m for an Equity Fund (The Thames Valley Growth Fund) – designed to support ambitious growing businesses and to be released when matched with private funds.

The FSE Group, an independent not-for-profit company, will manage the £7.25m fund on behalf of the LEP.

Kevan Jones, CEO, The FSE Group commented: “We’re delighted to be working on this initiative as we understand the risks involved in lending, and have over 10 years of experience in assessing businesses and the value that they will bring to a local economy. Many potential applicants are already in the pipeline and I urge companies to include apprentices in their business growth plans and to look at the criteria from every possible angle. Although we’re the fund managers, our company is also regulated by the FSA, to ensure that the decisions we make will be the best for individual businesses and the overall health and prosperity of Thames Valley Berkshire.”

TVB LEP is the only LEP to use its Growing Places Fund - in line with national government - to drive growth and jobs in this way. TVB LEP was allocated £15m capital in the Growing Places Fund of which £10.28m has been already committed across a balanced portfolio that includes commitments to the Superfast Berkshire (broadband) initiative, a town centre regeneration scheme in Bracknell and some revenue to support the Western Rail Access to Heathrow project, which has successfully attracted £500m of funding committed from government.

Resources: Thames Valley LEP website