November 12

THE South West’s regeneration body was today taking the wraps off its multi-million-pound action plan designed to pull the region’s economy through the recession.

At a conference in Bristol today, the South West Regional Development Agency was preparing to pledge £10 million to a new loan fund to help firms grow and to double the amount of money available for research and development.

It is also to boost its Graduates for Business programme by £2 million as part of a raft of measures that would “develop or expand” the RDA’s existing programmes in the face of the global economic downturn, especially the work of Business Link, the gateway support service for small and medium-sized firms.

It is also looking at how it can establish a fund to help firms become more resource-efficient.

Speaking before the launch of First Steps: Action for Recovery, published at the RDA’s Business Stakeholder Conference, Stephen Peacock, executive director for enterprise and innovation, said: “The global economy is facing unprecedented challenges and for many of the region’s businesses, simply surviving is getting tougher by the day.

“Responding to the short-term economic uncertainty is of paramount importance. With our partners, we will be doing all we can to help businesses deal with the economic crisis and chart a course for recovery.”

He added: “This does not mean that we have shifted our focus away from investing in the long-term health of the economy. We are still committed to developing a low-carbon economy, boosting productivity by investing in skills and innovation and ensuring the region’s key places are competitive and successful. 
“We will come out of the global economic downturn. We need to ensure that when we do, the South West is ready to do business.”

News of the new £10 million Business Loan Fund – which will support a small number of ambitious firms with loans of up to £250,000 from early next year – was greeted with delight by business leaders.

Tim Jones, chairman of the Devon and Cornwall Business Council and of two of the Westcountry’s most successful venture capital funds, welcomed the cash commitment.
He said that news of an additional allowance to bolster the legacy left by the South West Investment Group loan fund and the Finance Cornwall and Finance South West equity and loan funds, had been eagerly awaited.

Mr Jones told the WMN: “This is very good news. They are thinking strategially about the big need there is for top-ups of capital and there are numerous complaints about the rates of access to finance and the loan-to-value received, and this would be a very good way of getting around that.”

Under the action plan, a new round of Grant for Research and Development funding over three years from April 1 will enable businesses to apply for between £5,000 and £500,000 depending on the type of project.

There will also be access to loans of up to £50,000 from Community Finance Initiatives, and an enhanced support package from the RDA-funded Business Link service.

Additionally, the South West RDA will also be using its muscle with the major banks to “ensure South West business interests are high on the agenda” and it will discuss with Government how best to ensure that businesses in the region can quickly draw down funding from the European Investment Bank.