Loan Fund should help alleviate pain of credit crunch

Oct 1 2009 by Debbie Hall, West Lothian Courier

SMALL and medium-sized businesses can now access financial support thanks to the Business Gateway’s West Lothian Loan Fund.

The fund offers gap financing of up to £30,000 to help with business change projects.

Projects eligible for loan funding include new products/services, new manufacturing processes, quality improvements and new e-commerce systems.

Companies who could benefit from the fund include manufacturing, engineering, technology, software development, renewables and strategic tourism.

Executive councillor for transport and development Martyn Day explained: “With the arrival of the credit crunch and the consequent difficulty in accessing commercial funding through normal banking channels, the creation of the West Lothian business change funds towards the end of 2008 could not have been better timed.

“The fund aims to help ambitious local firms to grow through innovation and change and the scheme provides gap funding in the form of both grants and soft loans.”

One of the first firms to benefit has been Fasteq in Linlithgow.

Established in 2000, Fasteq quickly built up contracts supplying fastening technologies to electronics companies including Motorola and NEC.

Unfazed by the closure of those major local employers, Fasteq successfully diversified its client base and built up a portfolio of contracts in the Defence and Aerospace industries.

John Ward, Fasteq’s MD, identified a need to expand to larger, specialist premises but wanted to remain in the local area.

The ideal premises were found on Mill Road Industrial Estate in Linlithgow and Fasteq saw an opportunity to improve stock control processes, through the creation of a bonded warehouse facility with state-of-the-art stock control software.

When the £95,000 project couldn’t be fully funded commercially, Fasteq approached West Lothian Council’s Business Gateway.

A £5,000 project grant and £10,000 loan enabled the project to be implemented and has safeguarded three jobs and allowed the creation of five additional jobs at the company.

John Ward said: “We started the business in West Lothian and, although we had the option of several locations across the central belt, saw no reason to move out of the area.

“Although we trade across Europe and North America, West Lothian is well placed as a base for our continued growth.”

For more information contact Jim Henderson, Business Growth Adviser on 01506 777963 or e-mail bgateway@westlothian.gov.uk