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Finance Cornwall has reached a significant landmark by making the one hundredth loan from its Business Fund. The recipient is Powercats, a Redruth-based powered catamaran manufacturer that was named Innovative Boat of the Year manufacturer at the 2006 British Marine Awards for its 525 twin hulled vessel.

Powercats, which started life on the Isles of Scilly, will use the money to develop a brand new Powercat, the larger two berth “695” boat, which is due to be launched in June 2008. In addition, the loan from Finance Cornwall will aid an increase in production to meet demand for the “525” models.
Cornwall’s economy is dominated by SMEs – small to medium sized enterprises – and many find it hard to get the capital they need to expand production, acquire a new business, buy premises or invest in new technology. Backing from Finance Cornwall can make these goals achievable. The Business Fund can offer up to 50% of the capital needed and its reputation is such that banks are often more confident about lending the balance once they know Finance Cornwall is involved.

Jay Pengelly, Powercats Sales and Marketing Director, says: “We are delighted that Powercats is the 100th loan recipient from Finance Cornwall, which is providing vital funding that will help us bring a completely new model to market and increase production of our increasingly popular 525 series. We have seen significant business growth over the past two years and this funding is helping us take a major step forward in the development of the business.”

Mike Wall, Finance Cornwall’s Business Loan Fund manager, says: “Reaching this milestone demonstrates the scale of investment Finance Cornwall is delivering into the economy. Over the last five and a half years Finance Cornwall Fund Managers has lent or invested £10 million; £3.2 million has been by way of loans from our Business Fund to an average of 22 companies per year. Assistance from the Business Fund, as well from Finance Cornwall’s two venture capital funds, has enabled a diverse range of private business in Cornwall to flourish, from an online Cornish hamper retailer to a helicopter company.”

Mike Wall says Finance Cornwall is about far more than loans, adding: “We partly subsidise a mentoring scheme so that business leaders can get expert advice on all aspects of running and marketing a company. We can command the sort of expertise that is normally only within the remit of large national firms.”

Finance Cornwall is unique in its ability to both lend and invest capital exclusively into companies or individual commercial projects within Cornwall and Scilly. The Business Fund can assist ventures with loans of between £20,000 and £100,000, whilst the Equity Fund and Mezzanine Fund can each invest between £100,000 and £500,000. Finance Cornwall began its life in September 2002 with assistance from the European Objective One programme. Its sister company, Finance South West, operates a similar business using European Objective 2 money and lends to companies in an area between Plymouth and Bristol. 

ENDS
Dated 09/05/08
Notes to Editors
Finance Cornwall is a £20m venture investment fund targeting small and medium sized enterprises in this region with a range of equity, mezzanine and debt capital. Finance Cornwall can lend or invest from £20,000 to £1 million per business and, to date, has invested £10 million in 121 businesses; levering £37.2 million into the Cornish economy, creating over 300 jobs and safeguarding 1,225. It is part funded by the EU through the Objective One Programme for Cornwall and the Isles of Scilly.
Finance Cornwall’s funds are administered by Finance Cornwall Fund Managers Limited; an investment company authorised and regulated by the Financial Services Authority registered in England and Wales, number 05010380, registered address 14 High Cross, Truro, Cornwall, TR1 2AJ.
For further information visit: www.financecornwall.co.uk
PR contact: Samantha McKay, PR Manager, Formedia, on: 01752 762120 or email: samantha@formedia.co.uk