The Humber Local Enterprise Partnership is launching the next round of applications for its Business Loan Fund, today (November 14).
There is up to £4m to bid for by businesses for capital projects that deliver critical infrastructure to unblock stalled schemes to deliver significant economic benefit.
Expressions of Interest can be submitted for applications for funding of between £100,000 and £1,000,000, although projects outside this range could be considered if they deliver exceptional outputs or value for money.
The Humber Business Loan Fund was set up in 2012 when the Humber LEP secured £8.2m from the Growing Places Fund working with Hull City Council. At present 9 projects have been supported by the Investment Board, which are all currently at various stages of the legal contract.
One such project is by Hull company Paneltex which has secured £500k loan from the fund to lease additional factory space adjoining the current premises to accommodate new plant and machinery to increase operating capacity and efficiency creating 34 jobs.
Humber Electrical Engineering is the most recent project to go into contract with plans to relocate, purchase assets, IT and plant with a loan of £350k, which will help to create 21 direct jobs by March 2016 and safeguard 84 posts.
Bryan Irving, CEO of Humber Electrical, said:
“We are delighted to have been provided with a business loan from Humber LEP. This will allow us to create additional jobs and increase the profile and efficiency of the business.
“Humber Electrical Engineering have ambitious growth plans and we are investing heavily in recruitment to further strengthen our team. Since accessing the loan, we have already created three additional permanent jobs in design and accounts. The loan will also help us to move to modern new premises in order to gain further operational efficiencies.”
The first deadline for submitting expressions of interest is midnight on 5 December and these will be considered at January’s Investment Board. Expression of Interest deadlines will continue on a monthly basis subject to funds being available.
Applications which best deliver economic activity and job creation will be asked to complete a full application for further consideration by the Investment Board. Key appraisal tests include delivery and risks, job creation benefits, growth potential and financial considerations.
The Business Loan Fund is a revolving fund and projects will be expected to repay their funding.
The projects must be located within the Humber area, which covers the administrative boundaries of Hull City, East Riding of Yorkshire, North Lincolnshire and North East Lincolnshire Councils.
David Kilburn, chair of the Humber LEP Investment Board said:
“It’s great to see projects taking off with the help of the Business Loan Fund which is giving businesses the ability to grow and create new jobs in the Humber Region.
“The whole community is primed to benefit from these loans as the recipients develop and prosper.”