SYIF announce interest rate changes
South Yorkshire Investment Fund has responded to the recent reduction in the Bank of England base rate by making changes to its interest rates.
The changes for new lending begin with immediate effect to demonstrate SYIF’s responsibility to the needs of local businesses.
SYIF’s Small Business Fund gross interest rate charged on all loans remains unchanged at 12% fixed, but rebates have been increased by 1%.
The rates below apply depending on the stage of development the business is in:
- Established and profitable business with three years profitable trading, forecasts and commensurate with the proposed debt levels – net 7%
- Established business with three years trading – net 9%
- Early stage businesses trading for less than three years – net 11%
These new rates have been set in line with European State Aids which limit the minimum net rates which SYIF can charge.
Meanwhile, the Capital and Development Funds continue to offer a rebate on its loans. The level of rebate and the underlying net interest rate paid will be dependent upon the risk associated with the investment.
The Seedcorn Fund continues to make investments in the form of equity deals and convertible loans. Larger investments are made in phased payments related to progress against agreed development milestones.
The rebates are subject to certain conditions, including the provision of management accounts and compliance with the terms of the loan agreement.
SYIF has also announced that from January 1, 2009 all new business loans will attract an arrangement fee and the dispensation for loans up to £50,000 will come to an end.
Further details are available at www.syif.com, via SYIF investment managers or by calling 01709 386377.
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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).