Dudley Council working with BCRS to provide access to loan fund for Dudley businesses

Dudley Council working with BCRS to provide access to loan fund for Dudley businessesA £1m business loan fund to boost the economy and create jobs has been launched by Dudley Council.

Local authority bosses have put pen to paper to launch the Dudley Business Loan Fund over the next two years. The council has created the initiative in partnership with the Black Country Reinvestment Society (BCRS), to help offer financial support to small and medium-sized businesses in the borough.

The fund will offer loans from £10,000 to £50,000 and is open to companies with up to 250 employees and a turnover not exceeding £5m. Repayment periods of one-to-five years can be agreed and there are no early repayment penalties.

Stoke-on-Trent City Council announced a similar scheme in conjunction with BCRS in June. Initially, £200,000 is available for lending to companies that are having problems getting the funding they need from traditional sources.

BCRS chief executive Paul Kalinauckas said: “This fund will certainly help Dudley develop, grow and prosper. Small businesses are under the radar when it comes to access to finance, which is holding back their growth prospects.

“If they get turned down by the banks they can now come to us. This is an exciting time to find new and innovative ways of non-bank lending and we are looking forward to providing local people with job opportunities and creating wealth in the Dudley area by providing finance for local businesses.”

Councillor Shaukat Ali, cabinet member for economic regeneration, added: “We anticipate there are about 9,000 businesses in the borough which are eligible for the fund in terms of employing up to 250 people and having turnovers less than £5m.”

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