THE second Northern Ireland small business loan fund has approved support to business of more than £1 million in its first nine months, indicating even stronger demand than for its predecessor fund.
Managed by Ulster Community Finance (UCF) on behalf of Invest NI and delivered in partnership with Enterprise NI, the fund provides loans up to £100,000 to small businesses, sole traders and partnerships keen to develop their business. Start-up companies can obtain initial loans up to £15,000.
UCIT’s finance director Barry Connolly said: “With loan support now increased to £100,000 per client, the new fund has the potential to lend over £9 million to local SMEs over its five-year term.
"In the first fund we supported 400 small businesses, and our ambition is to exceed this number in the second round.
“Funding is available for capital investment, growth related working capital needs, new product and market development; whatever can assist a business to grow and achieve its potential, we are there to help.”
One of the firms to benefit from the latest fund is Clogher Valley Precision located near Omagh, which engineers parts used in the manufacture of forklifts, container lifting machines, quarry equipment, agricultural equipment and the marine industry.
It used a £50,000 loan to purchase a new automated machining tool to produce complex components and reduce manufacturing times.
Director David Gill said: “For 15 years we've produced parts for various companies across Ireland such as Combilift in Monaghan, and the loan has enabled us to purchase new machinery to help increase production capacity and efficiency. It complements our existing automated machines and allows our workforce to utilise the most up-to-date technologies.”
Invest NI’s director of corporate finance William McCulla added: “This new small business loan fund has got off to a great start, and applications from companies like Clogher Valley Precision, which is using the loan to increase production, demonstrates the continued strong demand from small businesses for finance to help them grow.
“The fund continues to be a key aspect of our Access to Finance portfolio, supporting businesses, creating jobs and helping to grow the Northern Ireland economy.”
