Essex County Council is to become the first local authority in the country to provide financial assistance to small businesses during the economic downturn. Innovative plans to make £50m available for lending to local businesses were approved at a meeting of Essex County Councils Cabinet.
Last November Essex County Council announced a number of proposals designed to support businesses through the economic downturn, one of which was the creation of a ‘Bank of Essex’. Since then a model has been developed called ‘Banking on Essex’, which will provide an innovative range of financial services to small businesses in Essex.
Lord Hanningfield, Leader of Essex County Council said: “Our aim is to deliver invaluable assistance to small businesses, and also promote economic well-being in the county. By doing this we also want to ensure that small businesses are in a strong position when the economy improves. In the longer term I would like to develop this into a municipal Bank of Essex, similar to the successful American model on local banking.”
Many local businesses have found their access to credit and finance restricted in the current economic climate. Essex County Council aims to support them by making funds available and allowing them to continue trading. It is also hoped that this will mean small businesses do not have to cut jobs due to lack of credit.
Banking on Essex will make the following functions available to local businesses:
The scheme will be delivered in partnership with banks that meet Essex County Council’s minimum lending criteria. The partner banks will make the decisions on whether a business can be lent to.
Loans will be jointly funded between Essex County Council and the partner banks. For more information on the package of support Essex County Council is making available for local businesses visit www.essex.gov.uk/downturn.
EssexWorks: For a better quality of life
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