Shropshire enterprise fund to bid for ERDF funding
Shropshire Council has awarded more than £223,000 to 114 fledgling businesses through its business enterprise fund. Mark Pembleton, head of economic development at the council, told Insider the council would apply for £750,000 of European Regional Development Funding (ERDF) to continue the programme for the next three years, after funds from its two initial sponsor schemes became obsolete following government spending cuts.
Shropshire Council provided investment for the fund on a one-year basis, following the collapse of several government funding schemes.
The council will bid for £250,000 from the ERDF for each of the next three years.
Pembleton said: “We are fairly confident about getting ERDF funding next year. But if we are unsuccessful, enterprise is one of the council’s main priorities so upcoming businesses will not get sidelined.”
Pembleton said the fund was set up in November last year to target start-up businesses and companies up to three-years-old.
He said: “Shropshire Business Board identified the region was in desperate need of funding. Even at three years, companies can come up against a brick wall when it comes to funding. Banks are only prepared to back companies if the venture is a guaranteed success.”
The fund offers a retail business grant, which aims to address the issue of empty shops and is offered to new retail businesses opening in shop premises that have been empty for more than six months.
Up to £1,000 is available towards business rates paid in the first 12 months that the shop premises have been occupied, and a further £1,000 towards capital set up costs.
The fund has lent to businesses across sectors including manufacturing, food and drink and ICT.
“We match investment from the business, so it’s a 50/50 venture”, said Pembleton. “We’ve funded all sorts of purchases, from a boat for a new ship transportation company, to equipment for a dog grooming business.”
The fund has helped 24 start-up businesses since its launch, and has four rounds of bidding each year for fledgling businesses in the region to submit their proposals for funding.
