LOAN FUNDS
To receive a presentation from GLE OneLondon outlining their Loan Funds and programmes they are currently offering across London.
Minutes:
The Panel received a presentation from GLE oneLondon in respect of the availability of loan funds for local authorities. GLE one London was a provider of business support and non bank finance to SME’s. They provided loans to London businesses that had difficulties in securing access to mainstream finance. The majority of the loans were for sums less than £50k and were for existing businesses to prevent closure or redundancies caused by the current credit crunch, they were all based on the liability of the business. GLE oneLondon explained that their tailor made packages were ready to go, with fully established procedures and experienced lending teams. Details of the likely costs were outlined. The cost to the Council of running a £300,000 loan scheme would be less than £100,000, and such a loan would support around 25 businesses to maintain the local economy, to save or create new jobs. The offer from GLE was open to all London boroughs. Although the loans were unsecure, guarantees were required from Directors and occasionally debentures were sought. Sole traders were personally liable.
Members sought further statistical data on the number and types of loans that had been issued. It was noted that less than 15% of loans defaulted. GLE oneLondon agreed to provide further information on their recovery procedures.
It was accepted that there was a general shortage of start up capital for small businesses in London.
RESOLVED: