16.05.07
Business urged to take advantage of interest free loan scheme

Small and medium sized businesses in Cornwall are being urged to take advantage of interest-free loans, using Objective One investment, that are still available via the South West Investment Group (SWIG).

SWIG has since 1989 specialised in providing help to those businesses that benefit the local economy but need more than the banks are able to provide.

In Cornwall and the Isles of Scilly, Objective One European Regional Development Fund (ERDF) backing means that interest free loans of up to £50,000 have been available to assist with start up or expansion costs for eligible businesses since 2001.

The successful loan scheme, which has also received investment from Cornwall County Council, has to date awarded nearly £3 million to 220 businesses in Cornwall and the Isles of Scilly. This has so far helped to generate an additional £12 million sales turnover collectively and create over 400 new jobs.

The scheme is now in its final year and it is anticipated that all remaining funds will be committed by September 2007. John Peters, SWIG's Cornwall Fund Manager, said: "This scheme has been tremendously successful. However the end of Objective One support means that the interest-free funding is now becoming limited and I would advise anyone who may think they are eligible to apply sooner rather than later to ensure we are able to consider them for support."

An example of a company benefiting from SWIG support is Powercats, which manufactures a range of highly manoeuvrable, twin hulled, twin engine catamarans from its factory in Redruth. Powercats is using £40,000 from SWIG's Cornwall Business Growth Fund to help market the boats throughout the UK, undertake further product development and fit out their new premises.

Powercats Director Matt McLeod explained: "The SWIG funding has really enabled us to ramp up production and review and improve the way we market Powercats. It has helped us to produce quality sales materials and attend the London Boat Show in January. This is a very exciting time for the company and the SWIG funding has played a key role in our success to date."

Powercats has also received Objective One support via Business Link Devon and Cornwall and the Cornwall Marine Network.

To contact SWIG, telephone 01872 223883 or visit their website at www.southwestinvestmentgroup.co.uk.

For further information please contact Clare Morgan, Media Relations Manager for the Objective One Partnership on 01872 223439/07973 813647 or email cmorgan@cornwall.gov.uk.

The Objective One Programme for Cornwall and the Isles of Scilly has invested in the South West Investment Group through the European Regional Development fund (ERDF).

Editor's notes:

Clare Morgan
Media Relations Manager
Objective One Partnership Office
Castle House
Pydar Street
Truro TR1 2UD
Mobile: 07973 813647
Telephone: 01872 223439

cmorgan@cornwall.gov.uk

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