Manufacturers given �4m loan fund

Lord Mandelson met more than 100 business leaders in Birmingham

Manufacturing firms in the West Midlands region are to get a �4m loan to ease their short-term funding problems during the economic downturn.

Business Secretary Lord Mandelson made the announcement after meeting business leaders in Birmingham.

He said the fund would be administered by the regional development agency Advantage West Midlands and run on a commercial basis.

Loans of up to �250,000 are to be offered to small or medium-sized firms.

'Finance crucial'

The Transition Loan Fund was announced after Lord Mandelson met more than 100 business leaders at Birmingham's International Convention Centre on Friday.

He said: "We will do all we can to support companies through difficult times here in the West Midlands and across the country.

"Access to finance is crucial for businesses to survive."

The model for the loan fund is similar to the one offered after the collapse of MG Rover and, if successful, could be copied in other regions.

Small and medium-sized companies across the Birmingham and Black Country area, Shropshire, Staffordshire, Warwickshire, Herefordshire and Worcestershire are eligible to apply for money.

Lord Mandelson praised the West Midlands economy, which he said had "very strong foundations."

He added: "It has an economy rooted in manufacturing, engineering and precision skills that the rest of the world looks to Britain for."