South West Investment Fund (SWIF)
Product video - https://youtu.be/UTuE9kDG6_g
SWIF is all about growth for SME’s and has been launched by the British Business Bank to plug the gaps in access to finance that entrepreneurs, start-ups or small businesses may be facing.
The overall fund is £200 million across the South West covering Bristol, Cornwall and the Isles of Scilly, Devon, Dorset, Gloucestershire, Somerset and Wiltshire and has a deployment period of 5 years. Not sure what will be offered from 2028 onwards.
There are 3 funds available:
Small business loans for new and growing businesses which can be used to fill the funding gap for growth and development projects.
Total of £20 million over the 5 years lending £25k up to £100k (roughly 5 loans a month).
Steve Mayell looking after Wiltshire & Dorset with another being recruited for this area.
Business loans for businesses that can demonstrate growth potential. Maybe the business is wanting to lease new commercial premises, hire a new team, fund marketing costs, purchase new machinery or equipment or launch a new product or service.
The growth loans are between £100k to £2 million for businesses with proven business concepts (existing sales and customers), well developed teams. The business must have commercial potential and viable business plans and be able to demonstrate their requirements.
Businesses have 5 years to pay back the loan with a capital repayment holiday, typically up to 6 months and interest rate is between 7% and 10% above the base rate.
Julian Wright looking after Dorset and will be supported by investment managers within the patch.
Early stage equity funding up to £5 million (excluding matched private investment; not likely to exceed £2.5 million)for businesses with ambitious growth.
It requires co-investment (match funding) 50% from investors who will also add value not just the money and they are looking at between 5% and 7% stake within the business.
There are arrangement fees, monitoring fees & legal costs do apply.
To apply, the business must have some existing sales and customers or credible near-term prospects for making such sales. A credible business strategy to deliver significant growth and a viable product/service with clear market potential. Also the business should have a sustainable competitive advantage with supporting IP rights as necessary. Financial projections showing use of funds and a committed management team with relevant background/experience.
They also require a realistic exit strategy with potential to be achieved within 5 years.
Details on how to apply are on the PDF attached below