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23.01.03      
Finance Cornwall celebrates completion of first deals

Finance Cornwall, the Objective One funded £20 million investment fund for companies in or locating to Cornwall and the Isles of Scilly, is celebrating the completion of its first three funding deals worth almost £430,000.

Three businesses in Saltash, St Austell and Wadebridge have all been funded through Finance Cornwall’s Business Loan Fund, which offers loans of between £5,000 and £50,000 for viable, privately-owned businesses in Cornwall and Scilly whose funding needs cannot be fully met from other sources.

Finance Cornwall has provided £120,000 in loans, helping to attract an additional £307,000 of investment into the three businesses helping to create nine new jobs and safeguard a further 23.

Robin Teverson, chief executive of Finance Cornwall, said: “These three deals illustrate exactly what Finance Cornwall is all about. Without our support, none of these deals would have gone through because in each case our loan was crucial to completing the funding package.

“By investing £120,000 in these three different businesses to help them expand and grow, we have helped lever in an additional £307,000. That adds up to a total investment of almost £430,000 that otherwise wouldn’t have happened, creating and safeguarding jobs in Cornwall.

“We’ve had more than 200 enquiries since our launch just four months ago, and have 106 live projects currently on our books, spread across the three different funds that we offer.”

Jeff Lenihan, who manages Finance Cornwall’s Business Loan Fund, said: “These three deals illustrate the sheer diversity of businesses that can benefit from Finance Cornwall, and we’re delighted that we’ve been able to make them happen. I’ve got a further 66 live enquiries from businesses across Cornwall. I’ve been extremely impressed by the quality and range of applications, and will always welcome more.”

The three deals are:

Albaston Garage, Saltash
: specialist engine management business. £20,000 loan from Finance Cornwall’s Business Loan Fund towards a £172,000 investment, allowing the business to merge with another automotive business, creating two new jobs and safeguarding a further three.


Leisure Resource, Bodmin: niche recruitment consultancy specialising in the hospitality industry. £50,000 loan from Finance Cornwall’s Business Loan Fund towards a £110,000 investment in new computers, software and website development, creating six new jobs.

Holmbush International Ltd, St Austell: long established plastics manufacturer. £50,000 loan from Finance Cornwall’s Business Loan Fund towards a £145,000 investment in new machinery and stock, safeguarding 20 jobs.

Finance Cornwall operates three different funds providing loans and equity investments ranging from £5,000 up to £650,000 to viable small and medium-sized businesses that cannot source all the funding they need from elsewhere.

This might be because the business is too small, it does not have a sufficient track record of trading, the balance sheet is weak or the business does not have enough collateral.

In addition to the Business Loan Fund, Finance Cornwall operates the Mezzanine Fund, providing loans of between £50,000 and £250,000, and the Equity Fund, providing equity investments of between £50,000 and £500,000.

Funding is available to businesses whose principal place of operation is, or will be, in Cornwall or the Isles of Scilly. The funds are managed by Alliance Fund Managers Ltd, which is regulated by the Financial Services Authority in the course of investment business.

For more information contact:
Robin Teverson
Chief Executive, Finance Cornwall
Tel: 01872 272288, or visit:
www.financecornwall.co.uk

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Editor's notes:

Separate press releases and photography profiling each of the three deals is available by contacting Laura Tregonning at Deborah Clark & Associates on 01872 276276, email dclark@dclark.co.uk.

Finance Cornwall background
Finance Cornwall is a £20 million investment fund which is backed by £9 million from the Objective One European Regional Development Fund, £10.12 million from Barclays Bank and £880,000 from Cornwall County Council. Finance Cornwall provides loans and equity investments ranging from just £5,000 up to £650,000 to small and medium-sized businesses in or locating to Cornwall and the Isles of Scilly that find it difficult to find funding from other sources.

The three funds are:

Business Loan Fund: loans from £5,000 up to £50,000 for viable, privately owned small and medium sized enterprises in Cornwall and Scilly whose funding needs cannot be fully met from other sources.

Mezzanine Loan Fund: loans from £50,000 to £250,000 with equity options for viable, privately owned small and medium sized enterprises in Cornwall and Scilly whose funding needs cannot be fully met from other sources.

Equity Fund: equity investment of between £50,000 and £500,000 for viable, privately owned small and medium sized enterprises in Cornwall and Scilly whose funding needs cannot be fully met from other sources. Attractive to businesses that have exhausted alternative loan or private resources but still need additional funds for growth.

Finance Cornwall funds are managed by Alliance Fund Managers Ltd, which is regulated by the Financial Services Authority in the course of investment business.

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Jason Clark
Communications Manager
Objective One Partnership Office
Castle House
Pydar Street
Truro TR1 2UD
Tel: 01872 241379
Fax: 01872 241388

jason@dclark.co.uk

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