A SPECIALIST loan fund created to support small Northern Ireland businesses has now provided £6 million in loans and created 150 jobs.
The Northern Ireland Small Business Loan Fund, launched four years ago, was set up to provide access to finance for small businesses, sole traders and partnerships which are keen to develop their business, but find it difficult to access funding through traditional sources.
The Fund provides loans of up to £50,000 to start-ups, micro enterprises and small businesses. As a revolving fund it’s expected that a figure in excess of £7 million will be made available over the course of the fund’s lifetime.
In addition to the estimated 150 new jobs created, additional sales of almost £30 million have been reported as a result of the loans.
The fund is managed by Ulster Community Finance (UCF) on behalf of Invest Northern Ireland and delivered in partnership with Enterprise Northern Ireland. UCF is a subsidiary of the social finance organisation Ulster Community Investment Trust (UCIT).
UCIT CEO Harry McDaid said a strong SME sector was vital for the Northern Ireland economy.
“Northern Ireland has the highest concentration of SMEs in the UK and accounts for 99 per cent of our private sector. Ensuring that these firms have adequate access to funding is, therefore, essential for the well-being of the economy," he said.
“The Fund’s clients are ambitious, growth-orientated firms and together they represent significant levels of employment and wealth creation. Northern Ireland needs to grow its own pool of successful indigenous companies and we’re confident that some of tomorrow’s star business performers will be beneficiaries of this Fund.”
Invest NI's director of corporate finance William McCulla said the Small Business Loan Fund continues to make a "significant difference" to the business community in Northern Ireland.
“We are delighted to have offered this support to a range of businesses across Northern Ireland in sectors including IT, manufacturing, hospitality, tourism and retail, which has helped to create jobs, bring new products to market and help company’s realise their growth ambitions.”
One of the firms to benefit from the Fund is Brocagh Precision Engineering Ltd (BPE), located near Coalisland. The firm designs and manufactures bespoke components for clients in sectors ranging from heavy engineering to aerospace.
Director Paul Donnelly said the funds provided to the firm have aided its expansion into new markets.
he funds provided by the Northern Ireland Small Business Loan Fund have enabled us to invest in new machinery and provide working capital. This has allowed BPE to develop new products for the construction and demolition sector, expand into new markets and increase efficiency within the company. Following the completion of two recent projects we have secured a number of export orders for our new product range and have seen our sales grow by 20 per cent."
Donal Leahy, senior lending executive at Enterprise NI, added:
"A funding gap in the market for SMEs is now being covered and we aim to sustain and exceed this provision over the coming years.”
