Fund offering businesses 100% interest rebate for 6 months
Published: 24th February 2004
Please note this offer has now ended.
Offer available to businesses in Barnsley, Doncaster, Rotherham and Sheffield
South Yorkshire Investment Fund is to extend its special offer - offering 100% interest rebates to all businesses in South Yorkshire (offer now ended).
Until now the offer was for businesses based in Barnsley, Doncaster and Rotherham, but it has proved so popular the Fund is now extending it across the region.
The initiative is aimed at increasing applications to the Fund through offering 100% rebate of interest payments for a full six months.
When a loan is approved and drawn down, businesses based in Barnsley, Doncaster, Rotherham and Sheffield will effectively pay 0% interest for a full six months.
Based on a £50k loan over 3 years there is an additional saving of £988 (based on gross interest rate of 12% per annum), on a £250k loan over 5 years an additional saving of £9068 (based on gross interest rate of 10% per annum, subject to fluctuation) and on a £1.5 million loan an additional saving of over £54,000! (based on gross interest rate of 10% per annum, subject to fluctuation).
Tony Goulbourn, Chief Executive of South Yorkshire Investment Fund Ltd, said: "We have been delighted with the success of this initiative and we are looking forward to hearing from businesses across the region that are looking to take their business to another level."
To benefit from this offer a business is expected to use a mentor or non-executive director from the Funds' Mentorbank project or a business may have an appropriate mentor in place. The mentor can give invaluable help and advice and the Fund will even subsidise their cost up to a maximum total of £6000!
The offer which is subject to availability and take-up, is also dependent on timely repayments and filing of monthly management accounts and reports.
The Fund can provide loans and equity investments ranging from £15k to £2.5m to businesses in, or prepared to relocate to, South Yorkshire. The Fund has already invested over £5.5 million in 82 businesses.
It offers two key products, one of which is loans ranging from £15k to £150k with effective annual interest rates from as little as 2.4% per annum. Loans are unsecured for the majority of established profitable businesses with unsecured loans of up to £50k available for start-ups or early stage businesses.
The second product is an equity-linked package of a loan with equity options or equity investment, ranging from £50k to £2.5m where the Fund may take a minority shareholding in the business.
A unique feature of the way the Fund can help businesses is the Mentorbank project, which provides subsidised mentoring support to help management teams grow their business more profitably. South Yorkshire Investment Fund also run Capital Network a Business Angels introductory service for early stage businesses in South Yorkshire. Where appropriate Business Angle finance can also complement South Yorkshire Investment Fund investment packages.
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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).