17/11/2008 - £4m fund open to Midlands firms
The country's manufacturing heartland is to receive a £4 million boost in a bid to offset the damage caused by the global credit crunch.
The West Midlands aid, announced during a visit to the region by business secretary Lord Mandelson, aims to help firms overcome short-term funding problems. The fund, administered by regional development agency Advantage West Midlands, will be run on a commercial basis providing loans of up to £250,000 to small and medium sized concerns.
After meeting more than 100 business leaders at Birmingham's International Convention Centre, Lord Mandelson said: "We will do all we can to support companies through difficult times here in the West Midlands and across the country. Access to finance is crucial for businesses to survive."
He added that the West Midlands economy had solid foundations and was well-equipped to emerge from the economic downturn in good shape. The model for the loan fund, which is similar to one offered after the collapse of MG Rover, may be copied in other regions.
Lord Mandelson added: "The West Midlands economy has very strong foundations - it has an economy rooted in manufacturing, engineering and precision skills that the rest of the world looks to Britain for. Where the Government can move and help, and shore up businesses which are viable and have a strong future, we will do that."
Copyright © Press Association 2008
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