Regional lender Mercia continues its support of UK SMEs with the announcement of an additional commitment to its debt funds. Over the next five years, Mercia will provide up to GBP40million to support the growth of regional SMEs across the UK.Mercia SME Loans will be providing a much-needed source of finance to ambitious, regional businesses that are seeking debt finance as they move beyond the cash flow constrains caused by the COVID-19 pandemic.
Mercia’s investment team can lend between GBP100,000 to GBP1million to fund working capital, acquisitions, capital investment and management team restructures/buyouts, an area of specialism for Mercia. The fund can invest in all areas of the UK with a focus on the North of England.
Mercia SME Loans is backed by existing investor, Greater Manchester Pension Fund. It builds on earlier investments completed into previous debt and private equity funds in a relationship which spans more than 15 years.
Mercia’s first SME Loans fund launched in 2015 and backed 52 businesses including high profile brands such as Harrogate Spring Water and polyeurathane fabricators, Rosehill Polymers.
MD of Mercia Debt Funds, Paul Taberner, says: “Mercia SME Loans backs profitable and ambitious SMEs that are reigniting growth plans stalled during the first part of this year. We’re already seeing a strong pipeline of new deals as the regional economies start to recover and we hope initiatives like the launch of our new fund will stimulate even more growth as the country fights back to recovery.”