Firms are first to get share of £10m

TWO Westcountry businesses have received the first funding from the £10 million South West Loans Fund, set up to help viable businesses access finance to support their growth plans.

T-Plan, based on the Tolvaddon Energy Park near Camborne, has received £150,000 to invest in staff recruitment and the launch of a new product, creating eight jobs over two years.

And Dart Rock, a newly-opened climbing wall business in Buckfastleigh, has received £50,000 towards its construction costs.

The loans are among £600,000 worth of investments that have been approved since the fund was launched three months ago, and T-Plan is the first company to receive its money with Dart Rock following soon after.

The fund has received more than 200 inquires and nearly 80 applications are being progressed. The £10 million scheme was set up by the South West Regional Development Agency (SWRDA) to help growth-orientated businesses.

The money is provided by SWRDA (£3.75 million) and the European Regional Development Fund through the ERDF Convergence Programme in Cornwall and the Isles of Scilly (£3.75 million) and the ERDF Competitiveness Programme for the rest of the region (£2.5 million).

Stephen Bohane, head of business development for SWRDA in Cornwall and the Isles of Scilly, said: "T-Plan is exactly the sort of business the loan fund was set up to support. They have excellent products and a growing international blue-chip client base but like many companies in the current market they need help accessing finance."

T-Plan was founded in 1990 and specialises in testing software to help clients get the most from their IT systems. The business employs 11 full-time staff and clients include the Bank of England, Virgin Mobile, BAe Systems and Xerox.

Chief executive Steve Marshall said: "I strongly believe that Cornwall should be the home of software in the UK, our very own Silicon Valley.

"With a great working environment, sensible cost base and the ability to sell products globally through broadband at the push of a button, Cornwall has the perfect opportunity to develop a vibrant new industry sector."

Philip Drinkall, an investor in Dart Rock, said the partners behind the business had opted for a mixture of investment and loan funding as well as private equity.

"We sought bank funding earlier this year and we did receive one proposal but on terms that were not attractive for attracting equity finance for the business. The funding we have now did not demand the same level of security as the bank," he said.

The South West Loans Fund is overseen by South West Investment Group (Capital) Ltd whose chief executive John Berry said: "Our fund managers have seen strong demand for the loan fund and we are delighted to be announcing our first investment.

"We've approved £600,000 of loans so far and other announcements will follow once contracts have been signed.

"We are targeting investment at those businesses with real potential to make a difference to the regional economy and have been impressed by the quality of proposals coming forward to our fund managers."

Businesses interested in funding out more about the loan fund should call Business Link on 0845 600 9966 or visit www.business link.gov.uk/southwest