A £1.4 million funding windfall has arrived in the Humber after a legacy donation between lending providers.
Partnership Investment Finance has granted almost £700,000 of its remaining pot to Finance For Enterprise. The capital is to be used to provide loans to SME businesses based within the Humber area.
As part of the agreement, Finance For Enterprise has pledged to match-fund the investments made to recipient businesses.
Launched in 2004, PIF was responsible for delivering both loan and equity-based investments and served as a delivery partner for Objective Two funding within Yorkshire, the Humber and North Lincolnshire. Between 2004 and 2010, the organisation helped more than 600 businesses to access £42 million in loan and equity funding.
Finance For Enterprise, which operates from offices in Grimsby and Doncaster, will use the PIF legacy to provide loans of up to £75,000 to small businesses that are unable to access finance from mainstream sources, such as banks.
Julia Chapman, chief executive of Partnership Investment Finance, said: ““PIF’s board is delighted to announce that Finance For Enterprise will continue to help small and medium sized businesses seeking finance in the Humber region.
“Like PIF, Finance For Enterprise has played a vital role in helping businesses to access the financial support needed to invest, innovate and evolve.
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“The decision to release our legacy is particularly timely and we hope it will help to provide a lifeline to those businesses unable to access traditional forms of lending, as they respond to the challenges posed by a changing economic climate.”
Finance For Enterprise assists businesses across Yorkshire, the Humber, Lincolnshire and the North Midlands and over the past 12 months it has provided £15.2 million in loan funding. It has helped to support 287 businesses during the Covid-19 pandemic, resulting in more than 3,000 jobs being safeguarded or created. In addition, it has helped more than 1,100 new entrepreneurs to launch start-up businesses over the years. It also acts as a delivery partner for the British Business Bank’s Start Up Loans scheme and the Northern Powerhouse Investment Fund.
Andrew Austwick, managing director, said: “The contribution made by PIF to support businesses during its lifetime shouldn’t be underestimated and as a result of the deal we have reached, we will continue their work in assisting small businesses within the Humber area.
“Small businesses are the lifeblood of the region’s economy and as a result of the deal we have secured, the new funds being made available, will see a total investment of £1.4 million being made, enabling businesses to seize new opportunities, as well as safeguarding and creating new jobs within the local economy.”