Skip to main content

Transition Loan Fund

Volume 485: debated on Thursday 11 December 2008

10. To ask the Minister of State, Department for Business, Enterprise and Regulatory Reform what criteria apply to the making of grants from the transition loan fund through regional development agencies. (242340)

The Transition Funds build on the successful example of Advantage West Midlands' Transition Bridge Fund which helped businesses in the aftermath of the collapse of MG Rover.

The key principle is that loans will be made on commercial terms, to viable businesses with good management.

Loans from the fund will normally only be made where the existing financiers (including bankers) are, at the time of application to the fund, willing to maintain some borrowing facilities on agreed terms.

Loans from the fund may not be used to pay down existing borrowings. Applicants, through their business plans, should be able to demonstrate a positive impact on jobs, either through job creation or job retention.