GLE oneLondon and Lloyds Bank have today announced the launch of the innovative London Loan Fund supported by the European Investment Fund (EIF) under the Progress Microfinance initiative. Lloyds has provided a £5 million fund which GLE will lend on to over 270 micro businesses in London providing them with another way to raise finance.
The fund uses UK tax incentives and EU-backed guarantees to make the costly process of a detailed appraisal of the ‘person and their proposition’ commercially viable for smaller value and unsecured, small business lending. The new fund is an alternative source of funding which will lend money to small and micro businesses in London. With support from the EIF, the London Loan Fund benefits from a guarantee issued under the European Progress Microfinance initiative established by the European Union.
In order to launch the London Loan Fund, GLE oneLondon, the EIF and Lloyds Bank are hosting a joint event on 30th April 2014. At the event, GLE oneLondon and Lloyds Bank will present the sustainable model in a panel discussion chaired by Sir Michael Snyder. The panel members will also discuss the finance needs of UK SMEs. Speakers at the event include:
Tim Hinton, MD, SME and Mid Markets Banking, Lloyds Banking Group, said: “Through this partnership with GLE, we are giving London’s smallest businesses another avenue through which they can borrow and we will be able to reach businesses that need a different level of support. We have grown our lending to SMEs by six percent over the past year, bucking the industry trend, but we want to ensure that even more small businesses - whether or not they are our customers - get the funding they need to invest and grow.”
Peter Thackwray OBE, Managing Director, GLE Enterprise Development explains: “This fund is a clever and very innovative way for small businesses to access finance provided by Lloyds Bank. Certainly, it is an exciting new development and we are extremely grateful to the entrepreneurialism of Lloyds Bank and the support of the EIF for backing our innovative idea, which we hope will be a model for much larger funds in the future. With the London Loan Fund we will aim to replicate the model on an ever-increasing scale to help UK’s small businesses gain finance, which they need to grow.”
George Passaris, Head of Securitisation at the European Investment Fund comments: “We are pleased to be signing this guarantee agreement under the Progress Microfinance initiative with GLE Loan Finance in London. This organisation, set up to provide microfinance to disadvantaged groups in deprived areas will be instrumental in helping micro-entrepreneurs to get their projects off the ground and will contribute to the economic growth and social inclusion in some of the most difficult neighbourhoods of London.”
Sir Michael Snyder, Chairman of the London Loan Fund, the Special Purpose Vehicle (SPV), through which the London Loan Fund will operate, and Senior Partner of top 20 accountancy firm Kingston Smith LLP, comments: “As senior partner of Kingston Smith and having spent over 35 years advising London-based SMEs, I am delighted to be taking part in this initiative, which will help small businesses in London get access to the funds they need to start up and grow.”
Micro-enterprises wishing to apply for a micro-loan under Progress Microfinance can directly contact: businessloans@gle.co.uk
About the European Progress Microfinance Facility
The European Progress Microfinance Facility (Progress Microfinance) provides guarantees and funded instruments to microfinance intermediaries. The initiative is established with EUR 203 million of funding from the European Commission and the European Investment Bank. Progress Microfinance aims to increase access to finance for micro-entrepreneurs, including the self-employed. It has a particular focus on, but is not restricted to, groups with limited access to the conventional credit market. Examples include female entrepreneurs, young entrepreneurs, entrepreneurs belonging to a minority group, entrepreneurs with a disability, sole traders etc. Loans less than EUR 25,000 are made available through selected intermediaries participating in the facility. Progress Microfinance does not provide financing or guarantees to micro-entrepreneurs or individuals directly.
The London Loan Fund marks the 52nd transaction signed under Progress Microfinance since its inception in 2010. To date, commitments of over EUR 130 million under Progress Microfinance have been signed to benefit EU micro-borrowers. Countries where agreements have been signed to date include Austria, Belgium, Bulgaria, Cyprus, Denmark, France, Greece, Ireland, Italy, Lithuania, Poland, Portugal, Romania, Slovenia, Slovakia, Spain, The Netherlands and the UK. For further information about this initiative please visit: www.ec.europa.eu/epmf
About EIF
The European Investment Fund's (EIF) central mission is to support Europe's micro, small and medium-sized businesses (SMEs) by helping them to access finance. EIF designs and develops venture and growth capital, guarantees and microfinance instruments which specifically target this market segment. In this role, EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth, and employment. EIF’s total net commitments to private equity funds amounted to over EUR 7.9bn at end 2013. With investments in over 435 funds, EIF is a leading player in European venture due to the scale and the scope of its investments, especially in high-tech and early-stage segments. EIF’s guarantees loan portfolio totalled over EUR 5.6bn in over 300 operations at end 2013, positioning it as a major European SME guarantees actor and a leading micro-finance guarantor.
About GLE oneLondonGLE is a leading provider of services, products and investment in finance for business, enterprise development, business accommodation and consultancy services. Bringing innovative and commercial approaches to economic growth we successfully unlock the potential of people and growing businesses. GLE Group is wholly owned by the 32 London boroughs and the City of London, yet is commercially and constitutionally independent and receives no public subsidy. More information at: www.gle.co.uk
About Lloyds Banking Group
With a heritage of making a difference within its communities that spans decades, last year Lloyds Banking Group invested £85m in UK Communities. Through its branches and businesses the Group has the potential to reach every family and community in the UK, and places immense value on its commitment to helping Britain prosper. Driven by its desire to give back to the communities in which it operates, the Group supports a wide range of ground breaking programmes. Lloyds Scholars, Money for Life, Lloyds Bank and Bank of Scotland Community Fund, the School for Social Entrepreneurs, Business Connectors, Lloyds Bank Foundations and the Bank of Scotland Foundation are some, but not exhaustive, examples of the programmes it supports.
About Kingston Smith
Working in partnership with our clients, we are committed to helping them succeed. We are chartered accountants and leading advisers to entrepreneurial businesses in London and the South East. Kingston Smith is a top 20 UK audit and accountancy firm (Accountancy Age).www.kingstonsmith.co.uk
Contacts:
We use cookies to give the best browser experience on our website. or change cookie settings.
Copyright ©
European Investment Fund – The European Investment Fund is not responsible for the content of external internet sites.