Road or house building schemes which may have hit the buffers because of a lack of cash might now get re-started thanks to this fund.
Building roads encourages businesses to relocate. And if they relocate their workers need somewhere to live, so if a housing estate is springing up too, it makes relocation an attractive package for a firm.
But the downturn means many developers and councils have shelved road and house building schemes.
Developers can now apply to their local council for a chunk of the fund to get them re-started. The council will then pass the application to Derbyshire and Nottinghamshire’s Local Enterprise Partnership – D2N2 – and it will decide whether or not to grant the loan
They can apply for a loan of between half a million and two and a half million pounds. Once the scheme they build starts making money they pay it back – and it can be re-loaned to another developer who needs investment.
– Colin Walton, D2N2 Chairman
The fund will support schemes that may have been held back in the current financial climate to get up and running and support our economic recovery.
Colin Walton said, "We will be looking at a number of factors when making decisions about which schemes to support including their economic impact and how quickly investments can be repaid to support other schemes. Anyone thinking of applying should download the guidance from our web-site.”