12/06/2012 - New Regional Bank Aiming to Assist Small Businesses
A new bank has been set up in Leicester, providing loans worth tens of millions of pounds to small businesses.
Cambridge & Counties Bank has been created by Cambridgeshire Local Government Pension Fund and a University of Cambridge college. It comes as developing businesses are finding it difficult to secure funds from the established high street lenders.
The new bank will move into the offices of Pensions Bank in New Walk, in the city, having bought the assets of the loss-making business. The new owners will develop into giving loans to small and medium-sized enterprises (SMEs) in Leicestershire, Cambridgeshire and Northamptonshire.
Bosses at the new bank said they were looking to lend £100 million to SMEs and pension funds over the next two years, with the majority going to businesses.
Mike Kirsopp, the bank's Chief Operating Officer, said:
"The market sector we are concentrating on is businesses that are making that growth spurt from small to medium-sized."
The bank will lend to SMEs with an annual turnover of less than £25 million. Loans will be between £50,000 and £1 million. The bank also proposes offering a range of deposit accounts.
Paul Folkes Davis, chairman of Cambridge & Counties Bank, commented:
"We regard Cambridge & Counties Bank as an unprecedented opportunity to marry a strong investment promising good returns with support for small businesses at a time they need it most."
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News provided by j4bgrants.co.uk.