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South Yorkshire fund boosts company's stock levels

Published: 10th January 2003

South Yorkshire Investment fund has backed JGP Engineering Ltd with a £25,000 unsecured loan that will allow it to buy much needed new stock.

JGP Engineering, situated in Rotherham, produces and installs electric gate systems. The company imports specialist equipment from DEA Systems in Italy, which it uses in its manufacturing process.

It also sells the equipment to other companies across the country and is the only authorised dealer of DEA System parts in the North of England.

Employing four people, the loan has proved vital to the company's future. Gary Phillis, managing director of JGP, said: "South Yorkshire Investment Fund was extremely helpful and great to work with. Without the loan we would have found it very difficult to continue operating at our current level.

"The extra funds have allowed us to purchase the level of stock that is, not only necessary, but vital to continue our business and improve our services to our customers."

Tony Goulbourn, Chief Executive of South Yorkshire Investment Fund Ltd, said: "JGP Engineering is just the kind of company that we seek to help. By offering loans to small businesses like this means they get the kind of support to develop their businesses which will improve employment prospects in the area."

The Fund provides development and risk capital ranging from £15,000 to £1,000,000 to businesses in, or prepared to relocate to, South Yorkshire.

It offers two key products, one of which is loans ranging from £15,000 to £100,000 with effective annual interest rates from as little as 3%.

The second product is an equity-linked package, ranging from £50,000 to £1,000,000 where the Fund takes a minority stake in the business.

The equity-linked package, with its competitive fees, is designed for new or existing businesses with potential for rapid expansion. Investments can be made as a mix of ordinary and preference shares or subordinated loan stock.

A unique feature of the Fund is its Mentorbank project, which provides subsidised mentoring support to help management teams grow the business more profitable.

The Fund's products are designed to support businesses through critical stages of growth. From start through to major expansion, the fund will provide financial backing. If a business is looking to start up, invest in new technology or equipment, enter new markets or locate into South Yorkshire it should call South Yorkshire Investment Fund first.

Editor's Notes

About South Yorkshire Investment Fund

South Yorkshire Investment Fund  provided seedcorn, loan and equity linked investments, ranging from £15k to £2.5m, specifically to help small and medium businesses meet the gaps in funding they need for growth and development.

Created as part of the Objective 1 programme, the Fund is a private and public sector business finance provider. The European Regional Development Fund and Yorkshire Forward are investors in the Fund.

South Yorkshire Investment Fund also provided access to Business Angel investments from the Yorkshire Association of Business Angels and Microloans through BiG Business Loan Fund and Donbac Microloan Fund.

Finance Yorkshire has now taken on responsibility for providing gap finance in Yorkshire and the Humber.

For further details please contact Suzanne Tinkler,  on 0845 649 0000.

South Yorkshire Investment Fund Ltd is a company limited by guarantee (Registered No 3936065). South Yorkshire Investment Fund comprises three sub funds, the South Yorkshire Investment Capital Fund, the South Yorkshire Investment Development Fund, which are each managed by YFM Venture Finance Limited, and the South Yorkshire Investment Small Business Fund, which is managed by Finance South Yorkshire Ltd. YFM Venture Finance Limited (Tel 0113 294 5000) and Finance South Yorkshire Ltd (Tel 01709 386 377) are each authorised and regulated by the Financial Services Authority. South Yorkshire Investment Fund also provides a number of services, which are not regulated by The Financial Services Authority. These include the pilot Seedcorn Fund, BiG Business Loan Fund, Mentorbank and access to the Donbac Microloan Fund. BiG Business Loan Fund is managed by Donbac Ltd (company registration No. 01925556) and Key Fund Yorkshire Ltd (Tel 0114 242 8900).