Decision details

Executive considered a report of the Portfolio Holder – Economic Development and the Portfolio Holder – Partnerships and Leisure which sought authorisation for the use of earmarked reserves to establish an Economic Loan Fund. It was also proposed to delegate authority to officers to finalise and implement the eligibility criteria, the application process and to issue eligible businesses with fixed term loans for between £2,000 and £10,000 from this fund.

The Economic Loan Fund was intended to supplement the Council’s investment in the Business Growth Fund by allowing the Council to offer small and medium-sized businesses loans of between £2,000 and £10,000 for a variety of projects.

It was noted that this fund was intended to cover businesses who would not be eligible for other government schemes. Robust financial checks and eligibility criteria would be put in place to mitigate against the risk of the loans not being repaid.

Moved by Councillor Liz Smyth and seconded by Councillor Mary Dooley

RESOLVED – that

1)   £150,000 be allocated from the earmarked reserve to establish an Economic Loan Fund.

2)   Executive grant delegated authority to the S.151 Officer, in consultation with the Assistant Director of Development and Planning and the Head of Leader’s Executive and Partnerships, to finalise and implement the eligibility criteria, the application process and to issue eligible businesses with fixed term loans for between £2,000 and £10,000 from this fund. 

REASON FOR DECISION:

It was considered that the Economic Loan Fund would be an additional but valuable source of financial support for many local businesses that will help grow the local economy and benefit the District.

OTHER OPTIONS CONSIDERED:

A ‘do nothing’ option was rejected taking into account the Council’s ambitions to support local businesses ad grow the local economy. A ‘do more option’ was rejected because of the increased financial risk to the Council and the affordability of a larger scheme.