Home > News & Events > July 2004 > News Article

SYIF Small Business Fund lends another £200,000 to South Yorkshire businesses.

Published: 1st July 2004

From left to right, Andrew Chaffer, the Investment Manager who led the deal, Dave Rogers, Managing Director of The Glass Shop and accountant Mark Barratt of accountants Harris & Co.

Over £4.7 million of loans to small and medium businesses across South Yorkshire.

South Yorkshire Investment Funds’ Small Business Fund has lent a further £200,000 to small and medium businesses – taking the total invested from the Small Business Fund to more than £4.7 million in 89 businesses.

The Small Business Fund is the part of SYIF which offers loans ranging from £15,000 to £100,000 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 £50,000 available for start-ups or early stage.

The latest round of loans to businesses follows one of SYIF’s busiest months which saw the equity team investing £1.5 million to just three companies in South Yorkshire – taking the total invested in businesses in the area to more than £6.9 million

The latest £200,000 of loans from the Small Business Fund has been invested in four companies based in Sheffield and Barnsley.

SEAMS Ltd, the Sheffield-based consultancy and information technology organisation has been awarded £50,000. SEAMS uses cutting edge technology to develop best case investment strategies to companies that own and run large infrastructure systems such as water, road and rail networks.

John Phillips, SEAM’s chairman, said: "The £50,000 from SYIF has allowed us to purchase new computer systems in order to upgrade our optimisation technology. This has provided an enormous boost to SEAMS and will now allow us to expand more rapidly over the next year."

The Glass Shop is a Barnsley-based company specialising in the manufacture of double-glazing. The company received £50,000 from SYIF and is using the loan to invest in essential machinery and training. The company was advised by Mark Barratt, partner at accountants Harris & Co in Barnsley.

Dave Rogers, director at The Glass Shop, said: "The money is a massive boost to us. One of the most positive aspects of the loan was the simplicity of the application process and the minimal paper work and administration involved."

Another company to profit from SYIF’s busy month of investing is electrical wholesalers CLE Electrical Wholesale Limited. The Sheffield-based small business supplies industrial products to companies across South Yorkshire.

Collin Lumsden, CLE’s managing director, commented: "The loan has allowed us to develop a wider range of stock and put our expansion plans into place."

Barnsley company Buzz Inc Ltd has also received a £50,000 loan from SYIF. The business provides environmental plastics solutions to utilities by removing and recycling waste products.

Andrew Edwards, operations director at Buzz, said: "The loan is so important to the company and it has allowed us to invest in essential tools. It’s fantastic to be able to put our long term plans and marketing strategy into action."

The Fund can provide loans and equity investments ranging from £15,000 to £2.5m to businesses in, or prepared to relocate to, South Yorkshire. The Fund has already invested more than £7.25 million in over 390 businesses.

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 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.

The second product is an equity-linked package of a loan with equity options or a equity investment, ranging from £50,000 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.

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).