Equity fund given go-ahead
The creation of a recyclable equity fund has been green-lighted by Birmingham city councillors. The fund, which will help local companies to grow their business, will complement the existing £10m Birmingham City Council Business Loan Fund (BLF).
It is expected to create about 850 new jobs in Birmingham over the lifetime of the investments.
The loan scheme will form part of a business support package and aims to assist companies which have sustainable plans to grow their business.
According to the council report, the fund will help create new employment opportunities by improving access to finance.
The fund will be managed and delivered by Finance Birmingham, which is expected to realise a net capital return of £5m back to the city council.
It has been agreed that investment will be deposited into the fund for the next five years.
