Chamber's new partnership to provide alternative to SMEs

A unique partnership between Greater Manchester Chamber of Commerce and The Royal Bank of Scotland (RBS) and NatWest is being unveiled next week, which has been established to provide an alternative business finance solution for businesses in Greater Manchester.

This new business finance initiative will provide loans from between £3,000-£50,000, plus a range of joined-up business support services, to small businesses within Greater Manchester who have been unable to secure loans from mainstream sources. The partnership is planning a combination of European Regional Development Funds (ERDF) and potential Regional Growth Funds totalling over £13million to establish the fund.

RBS and NatWest will promote the initiative to SME companies through its network of business and commercial banking centres, located throughout Greater Manchester.  

Endorsed by Mark Prisk, Minister of State for Business and Enterprise at the Department for Business, Innovation and Skills (BIS), the partnership between Greater Manchester Chamber’s Business Finance Solutions service and RBS is believed to be the first of its kind in the UK. The business finance initiative combines the skills and experience of RBS and NatWest, with a unique business finance support package offered through the country’s largest Chamber of Commerce.

The launch will take place on Wednesday 13th April at the offices of Addleshaw Goddard in central Manchester. The Group Chief Executive of RBS, Stephen Hester, will be attending, along with Ron Mason, Chairman of Business Finance Solutions and Keith Johnston, Board member of Greater Manchester Chamber of Commerce, Partner at Addleshaw Goddard and recently appointed Board member of the Greater Manchester Local Enterprise Partnership.

Commenting on the partnership, Paul Breen, Fund Manager for Business Finance Solutions, said:

“This is a unique alternative business finance concept delivering what the local business community in Greater Manchester really needs. Without the support from RBS, this would be difficult. In this groundbreaking partnership, RBS will be working alongside the Chamber as strategic partners and, through the loan and business support package, will be able to create or safeguard approximately 3,500 private sector jobs, through a revolving loan fund not dependent on public funding. The aim is to fill the current ‘gap’ in the market to create cost-efficient business growth, meeting core Government policy objectives.”
 
The partnership will be striking a balance between what government will do centrally and what will be delivered locally. This project is aiming to show the ‘Big Society’ agenda in practice and is fully aligned with the objectives in the coalition agreement to ensure the flow of credit to viable SMEs.

Tony Kelly, Managing Director of NatWest commercial banking in the North West, said: “We are fully supportive of the Business Finance initiative and are delighted to have the chance to be involved from the outset. SME businesses form the backbone of Greater Manchester's economy and it is therefore essential to find new ways to support their needs."