Lifeline for businesses
Last updated 11:46, Friday, 05 September 2008
WEST Cumbria is in line for a share of a £200m aid package for north west businesses struggling to cope with the economic downturn.
The cash, from the Northwest Regional Development Agency (NWDA), is aimed at helping firms through the choppy financial waters caused by the credit crunch and the steep inflation in commodity costs.
The main plank of the initiative is the Venture Capital Loan Fund (VCLF), due to be launched in the New Year.
VCLFs are used to stimulate innovation, research and development and growth in small and medium-sized enterprises (SMEs), by allowing greater access to cash for investment.
This scheme includes a £140m fund for cash to invest in skills training, a £10m high growth business support programme, a £4m innovation voucher scheme, plus measures to further improve access to finance for companies.
Treasury minister Yvette Cooper said: “The north west economy, like every region across the world, is being affected by the twin economic problems of the credit crunch and the high oil and food prices.
“But unlike in previous decades this region is now much stronger after years of strong growth and rising employment, backed by sustained and increasing government investment.
“But we are determined that Government, along with regional and local agencies, will work to ensure that businesses and households get the support they need in these times of uncertainty.
“Looking ahead, we will continue to make the investment that has supported regional regeneration and growth in the past, to ensure that growth continues well into the future.”
Steven Broomhead, chief executive of the NWDA said: “Businesses are now telling us that access to finance is their number one priority and we are making sure our services reflect that need.”
