Shropshire council launches £2m SME loan fund

A new loan fund launched by Shropshire Council aims to help local SMEs that are in need of finance but are turned down by the banks.

The fund, delivered by Impetus - a community development financial institution - on behalf of the council, will offer loans from £5,000 to £50,000 with terms from six months to five years.

Loans can be used for business expansion, from capital purchases (property and equipment) to bridging and working capital.

A total of £2 million will be available through the fund, a figure achieved from the collective resources of Impetus and further external funding.

Councillor Keith Barrow, Shropshire Council's leader, said: "Launching this new loan fund demonstrates how much we value the vital role small companies play in the county's economy. Around 90 per cent of businesses in Shropshire employ ten or fewer people and it is this group that statistics show is struggling to get finance from high street lenders."