Issue - meetings

Executive Board considered the attached report.

RECOMMENDED: That

1)    Council approve the introduction of a scheme of Support for SMEs, in accordance with the circumstances and criteria outlined in the report;

2)    Subject to the approval of the scheme, the award of business loans up to £1m for successful applicants, be delegated to the Operational Director, Finance, in liaison with the Executive Board Portfolio Holder for Resources and the Operational Director, Economy, Enterprise and Property;

3)    Subject to the approval of the scheme, the award of business loans of between £1m and £5m for successful applicants, be delegated to the Chief Executive in liaison with the Leader of the Council, the Executive Board Portfolio Holder for Resources, the Operational Director, Finance and the Operational Director, Economy, Enterprise and Property; and

4)    Subject to the approval of the scheme, the award of business loans over £5m for successful applicants, be a matter for decision by the Executive Board.

          Executive Board considered a report of the Operational Director, Finance, on the adoption of a scheme to provide financial support to Small and Medium Enterprises (SMEs).

          RESOLVED: That

1)    Council approve the introduction of a Scheme of Support for SMEs, in accordance with the circumstances and criteria outlined in the report;

2)    The award of business loans up to £1m for successful applicants, be delegated to the Operational Director, Finance, in liaison with the Executive Board Portfolio holder for Resources and the Operational Director, Economy, Enterprise and Property;

3)    The award of business loans of between £1m and £5m for successful applicants, be delegated to the Chief Executive  in liaison with the Leader of the Council, the Executive Board Portfolio holder for Resources, the Operational Director, Finance, and the Operational Director, Economy, Enterprise and Property; and

4)    The award of business loans over £5m for successful applicants, be a matter for decision by Executive Board.

The Board considered a report of the Operational Director, Finance, on the adoption of a scheme to provide financial support to Small and Medium Enterprises (SMEs).

The Board was advised that the Council had a proven track record and significant expertise in supporting SMEs to access grant and other funding opportunities, which assist with the development of their businesses. One of the aims in providing such assistance was to promote investment in the Borough where the market had limited capacity or appetite to invest.

It was reported that in the current economic climate, it had proven difficult for SMEs to obtain finance from the usual financial institutions, which hampered their ability to grow, expand and develop their businesses for the benefit of the Borough. The proposed scheme provided an opportunity for the Council to support SMEs in order to assist with sustaining and growing economic development and job creation in the Borough, whilst generating much needed business rates and interest revenue to support the delivery of Council services.

The report set out a number of criteria that would be used to evaluate proposals for the provision of financial support. The mechanism for assessing and evaluating proposals would include rigorous financial and legal due diligence; the interest rates applied would reflect the level of risk to the Council and be considered on a case by case basis; any additional costs incurred by the Council to be charged to the business submitting the application; and where an application was successful, a formal legal agreement be prepared and signed in advance of any funds being provided to ensure that the Council’s rights and funding were protected as far as possible.

RESOLVED: That

1)    Council be recommended to approve the introduction of a scheme of Support for SMEs,  in accordance with the circumstances and criteria outlined in the report;

2)    Subject to the approval of the scheme, the award of business loans up to £1m for successful applicants, be delegated to the Operational Director, Finance, in liaison with the Executive Board Portfolio Holder for Resources and the Operational Director, Economy, Enterprise and Property;

3)    Subject to the approval of the scheme, the award of business loans of between £1m and £5m for successful applicants, be delegated to the Chief Executive in liaison with the Leader of the Council, the Executive Board Portfolio Holder for Resources, the Operational Director, Finance and the Operational Director, Economy, Enterprise and Property; and

4)      Subject to the approval of the scheme, the award of business loans over £5m for successful applicants, be a matter for decision by the Executive Board.