Black Country Reinvestment Society Gives Loans to Local SMEs

I think we have all known for a very long time that big banks do not like SMEs, and that Project Merlin was unlikely to change what is effectively a well-entrenched sector-based discriminatory attitude.

In Wolverhampton, the Black Country Reinvestment Society has come up with a solution for local SMEs.

The Society was founded in 2002, and funded by entrepreneurs and companies located in the Black Country. Its funds have now been added to by Local Authorities who want to promote development in the area, and its small business fund now amounts to £5 million.

The Society will make loans of £10,000 to £50,000 for a number of business purposes to SMEs located in the Black Country, Staffordshire and environs which might otherwise be unable to find funding. Repayment terms are one to five years, and businesses seeking funding can apply on line.

Investors in the Society, by the way, can claim tax relief on monies put into the Society.

It's encouraging and pleasing to know that there are people who want to put something back into their community and are prepared to help small local businesses survive and thrive. What a pity it is that this attitude and model is not more widespread.