South Yorkshire businesses boosted by microloan partnership
Pictured (left to right): Angela Allison, Executive Director at Donbac with Patrick Gillespie at www.adoptajellybaby.com and Fiona Greaves SYIF Loans Manager.
Two of South Yorkshire’s most successful enterprise funding organisations have joined forces to provide microloans to new start up and existing businesses in the region.
The partnership between South Yorkshire Investment Fund and Donbac Ltd means small and medium sized enterprises across the region, which are unable to raise all or part of the finance they need from their bank have access to funds.
The Donbac Microloan can provide new start up businesses or those trading for up to six months, with loans between £1,000 and £5,000. Businesses that have completed six months of trading are eligible for loans of up to £15,000.
Similar to SYIF's partnership with the new BiG Business Loan Fund in Sheffield, the Donbac Microloan will target people across the rest of South Yorkshire who struggle to raise funds from banks because their venture is too early-stage or they may have experienced problems with poor credit history.
SYIF will distribute the loans and collect repayments while Donbac will assist with the completion of the loan agreements.
Tony Goulbourn, Chief Executive of SYIF, said: "It is a significant step for small enterprises in South Yorkshire that they now have wider access to microloan funding to help them establish.
"In the current climate, economic factors will impact upon small businesses' ability to get financial backing. The Donbac Microloan can provide a way around that.
"Donbac is an organisation with a rich tradition of successful investment and this partnership is another great opportunity for SYIF to support sustainable business growth and increase the success rate of locally-owned companies in the region."
The Donbac Loan Funds were established in the late 1980s with £2m funding from British Rail to help generate the local economy and provide accessible lending for start up businesses in Doncaster.
Donbac is an authorised lender under the SFLG scheme and continues to supply secured loans of £15,000 and over plus equity packages to busineses in the Doncaster 'travel to work' area.
Angela Allison, Executive Director of the Donbac, said: "The coming together of two large-scale secondary lenders can only be good news for the small businesses and entrepreneurs in South Yorkshire.
"The credit crunch means it is a tough time for SMEs but this partnership puts us in a stronger position to continue supporting enterprise and regenerating the economy."
For more information on the Donbac Microloan contact Angela Allison on 01302 341070.
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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).