SMALL firms struggling to get loans from banks can now turn to the £35m North West Fund for Business Loans.
However, Gary Guest, of FW Capital, which is managing the fund, insisted it would not be an easy touch, and that applicants would need to demonstrate a robust business case.
The loan fund is one of six funds launched in the last few weeks by the North West Fund (NWF), which is offering £184.8m to SMEs in the North West over the next five years in the form of equity investments and loans.
NWF has ringfenced 40% of the cash for Merseyside businesses.
Mr Guest will lead the loan fund for FW Capital, which will have offices in Liverpool, Manchester and Preston.
It will make debt investments of between £50,000 and £250,000 in “viable” SMEs.
He told LDP Business: “Obviously, at the moment, the banks are being cautious. We have £35m and we will be lending it.
“However, we will approach the assessment of applications on a commercial basis. We are there to support growing, profitable businesses and we are looking for a return.”
A former relationship director with Santander in Manchester, Mr Guest has worked with small firms in the North West for a number of years.
He added: “I’m pleased to join FW Capital to spearhead its activities in the North West.
“The North West Fund will play an increasingly important role in the growth of many businesses based in the North West.
“I’m keen to use my investment experience and expertise to help businesses maximise the potential of any debt investments they receive.”
NWF chief executive Andy Leach said: “We are delighted that Gary is joining FW Capital to manage The North West Fund for Business Loans.
“This element of The North West Fund has a very important role to play as the region’s SMEs grow into the recovery.
“Consequently, to have someone of Gary’s experience leading the FW Capital team is most welcome. We wish Gary every success in his new role and, personally, I look forward to working closely with him and his team.”