Decision details

This report seeks approval under delegated authority for the award of a loan to Original Iree Island Bakery Limited in the sum of £128,994.00 (one hundred and twenty eight thousand and nine hundred and ninety four pounds) for the purpose of the expansion of the current business and the introduction of a more efficient method of production at Unit B07, Leyton Industrial Village, Argall Avenue, London E10 7QP, subject to approval of appropriate license(s), planning permission should it be required

The business will use the loan to increase its workspace and purchase new machinery and equipment. The proposed expansion of the business will take place in two phases. The first phase will involve creation of a mezzanine floor to move the current offices and storage facilities to the mezzanine floor making room for new production machinery and a blast freezer and undertaking the necessary infrastructure and building works to increase production and introduce new products.

The project will:
• Create (at least) 6 jobs and 5 apprenticeship placements across the term of the loan;
• Create 1,344 sq ft of employment space.
Officers’ recommendation was approved by the PVF Advisory Group on 6th October 2021 meeting following evaluation of a funding application by officers and review and assessment by an independent external agency.

The recommendation is to award Original Iree Bakery Limited a loan for the value of £128,994.00

This project has been recommended for approval based on the evaluation of an application and business plan solicited through an open bidding round.

PVF has been set up on the recommendations in the Upper Lee Valley Productive Valley Strategy and Opportunity Area Planning Framework, developed by Haringey, Enfield and Waltham Forest to help small local businesses gain access to affordable finance to enable them to grow and new businesses to locate in the area, addressing the major market failure of a decrease in the supply and affordability of commercial space, particularly in industrial estates, creating wider positive benefits through the intensification of employment areas and increasing business rates income. It will protect and enhance the commercial viability of these industrial areas by providing affordable loans for premises' refurbishment and increased/more efficient production.

Not offering this loan to the applicant will result in the company moving out the Upper Lea Vally area. The company needs to grow to meet the demand for its products and services. Without the loan the company will have to relocate to another part of London. Such a move will be detrimental to the regeneration of the area and will undermine the efforts of the cross borough partnership and the Upper Lee Valley Productive Valley Strategy and Opportunity Area Planning Framework. Not offering the loan would also impact on grant agreement with the City of London and in meeting PVF targets