South West businesses to get £200m financial boost

Stevie Mitchell, founder of Collective Designs UK, said the loan had helped get his small company off the ground.

A new investment fund worth £200m has been launched to help small and medium sized businesses succeed.

The government owned British Business Bank says the South West Investment Fund will increase the supply and diversity of early-stage finance.

The Chief Executive said it will unlock the true potential of new and growing businesses, and instigate new economic growth in the region.

The fund has been warmly welcomed by south-west business leaders.

Phil Smith, the Managing Director of Business West, which represents businesses throughout the region, said the South West Investment Fund breaks down barriers and creates more opportunities for growth and innovation.

There are a range of commercial finance options with loans from £25,000 to £2m, and equity investment up to £5m.

Louis Taylor, the Chief Executive of the British Business Bank, said: "We're helping businesses to get to the point where they are absolutely off and running, and being able to grow, and being able to get finance from the mainstream finance providers, who perhaps are not serving the needs of small businesses as well as they should be."

'It's really valuable'

Bristol sustainable clothing business Collective Designs UK has already received a loan from the programme.

Founder, Stevie Mitchell, said high streets banks just weren't interested, so he turned to the British Business Bank for help.

He said: "Growing a business and being competitive as a small business can be difficult and without the funding we wouldn't be where we are today.

"It's been really valuable and I'm really thankful for all the support."

The new fund covers the entire south-west region including Bristol, Cornwall and the Isles of Scilly, Devon, Dorset, Gloucestershire, Somerset and Wiltshire.

The British Business Bank is holding a roadshow throughout July to provide more information.