05 February 2009
RBS and Natwest Launch £250m Regional Fund To Support SMEs in
the Northwest
- £3 billion new funding to be made available nationally through
package of financial products
- Twelve £250m local Funds launched across the United
Kingdom
- Funding managed locally by Regional Managing Directors who will
be targeted to fully utilise these Funds in 2009
- This builds on the Banks’ recently announced commitment to
guarantee overdrafts and pricing for small business customers until
at least the end of 2009
NatWest and RBS have today announced that they are to make an
additional £250 million funding available to SMEs in the North West
in 2009. This further commitment to the SME sector in the
North West will be delivered through a comprehensive package of
funding choices with effect from 5th February 2009. In
addition to providing traditional debt finance, the new funds will
offer businesses the opportunity to access other avenues available
to help them manage their capital and cashflow through the current
economic downturn.
This is part of the commitment made by the Bank last month to
increase lending to UK borrowers by an additional £6bn. The
new locally administered Fund will offer customers a wide range of
financial support including flexible business loans which allow
customers to postpone capital repayments, invoice finance products
which may guarantee debtor payment, effective ways to release cash
through using the assets already owned by the business and short
term trade finance essential to keep imports and exports
flowing.
Accessed via customers’ existing dedicated Business Relationship
Managers, the Fund will also offer SME customers lower priced loans
from the £250m funding the Bank has recently secured from the
European Investment Bank.
Welcoming the move, Beverley Hughes, Regional Minister,
said: "Small businesses are the lifeline of our economy and
it is critical that they are able to access the finance they need
to survive and grow. I am very pleased that NatWest and RBS
have today announced funding in the North West to support
small businesses in these challenging times. I welcome this move
that will ensure lending to businesses is stimulated at branch
level. I do hope that others lenders will take similar steps to
ensure that their front-line managers are incentivised to lend to
small and medium sized businesses - this is one of the most
important issues being raised with me by North West
businesses".
Announcing the package, Bill Ratcliffe, Managing Director of
NatWest and RBS Business and Commercial Banking in the North West,
commented: "Small and medium sized businesses in the North West are
the driving force behind the region's economy and will welcome the
Regional Fund. The vast majority of the 444,000 companies in
the region have fewer than 50 employees, and these make up over
half of the region’s workforce. The new Regional Fund shows
our commitment to continue to support and reassure North West
businesses, and we will be working closely with North West Regional
Development Agency to help local businesses trade through the
current economic downturn."
Bryan Gray, Chairman, Northwest Regional Development Agency (RDA)
said: “Small businesses are the lifeblood of our economy and
many have been struggling to access financial support from the
banks as a result of the credit crunch. The RDAs have
continued to raise this as a real issue with both Government and
the finance sector. This is why we are extremely pleased to
hear that NatWest and The Royal Bank of Scotland have today pledged
extra funding to support companies during these challenging
times. We welcome this announcement, and anticipate that the
move will act as an economic stimulus, helping to boost business
confidence. We very much hope that other banks will follow
suit and take similar steps in the near
future.”
ENDS
Notes to Editors:
• Small Business Loan Rate reduction: lowest ever Small
Business Loan rates - 5.9% APR for loans over £15k, with rates from
7.9% APR for loans between £1k- £15k. The reduced rates are
available for a limited period.
• EIB Funds via Business Term Loan: EIB funding will be
used to offer a reduced (60bps) priced Business Term Loan to SMEs
for a limited period (until EIB funding is fully utilised).
• Trading Business Loan: a 5 year fixed or variable rate loan
which is interest only for the first two years and balloon
repayment to repay outstanding debt at end of term.
• Invoice Finance with optional bad debt protection: Invoice
Finance facility with an option to provide more dependable cashflow
by building in bad debt protection.
• Lombard Asset Finance Capital Release: Product capability to
release cash locked inside businesses through refinancing of
working assets.
• Short Term Trade Finance: International trade finance
and cash management option for UK exporters and importers to
optimise working capital and protect cash.
• On 14th January 2009, the Business Secretary unveiled a
package of measures to help the cashflow, credit and investment
needs of UK SMEs. NatWest and RBS welcome these Government
initiatives. We have already pledged to help bring the
Enterprise Finance Guarantee (EFG) scheme to the market with
immediate effect and are working closely with the Government on
development of the Capital for Enterprise Fund and Working Capital
Scheme.
NatWest and RBS are the leading bank for SMEs providing banking
services to over one million SME customers. We have an
extensive geographical reach through our network of 2,279 branches
and 118 business centres. Our 3,800 relationship managers are
based locally in branches and business centres across Britain,
giving SMEs direct access to expert advice and support. In
November 2008, we provided small business customers with the
re-assurance that their committed overdraft would remain in place
for the agreed term, provided they operate within the terms of the
facility. In addition, we pledged not to increase margins on
committed overdrafts until at least the end of 2009 where there is
no change to the risk profile.
Enquiries to:
RBS UK Media Relations