GMCA launches £10m Bounce Back Fund in second lockdown response

Greater Manchester Combined Authority (GMCA) has pledged £10 million of emergency funding to support businesses in the city-region ineligible for the national Bounce Back Loan Scheme (BBLS).

GMCA has partnered with GC Business Finance to deliver the funding that aims to cover gaps in BBLS availability to some SMEs in Greater Manchester. This is the first time a UK Combined Authority has directly offered funding for this purpose.

GC Business Finance will be looking to support those business not already banking with existing Bounce Back Loan providers, and applications from Greater Manchester businesses are welcomed from Monday 16^th November through an online application. Applications will close once the fund is fully committed.

The limited £10m fund will be delivered by GC Business Finance, part of the Growth Company, the UK’s only non-profit Government-backed loans provider accredited by the British Business Bank under the Bounce Back Loans Scheme. Delivery will be through cutting-edge digital technology, offering top class customer service, quick decisions and integrated businesses support as part of the wider Growth Company offer. 

The funding pledged by GMCA follows recognition of the gap emerging in the market for those local businesses who are dependent on a Bounce Back Loan to continue to survive and grow despite the pandemic. GMCA’s vision to create a thriving economy in all parts of Greater Manchester and generate jobs with opportunities to grow and develop is dependent on local business infrastructure to make this vision a reality, a driving force behind their sense of responsibility and decision to make this pledge.

The approach by Greater Manchester allows for businesses to seek a more personalised and localised approach to funding through GC Business Finance, as well as access to a vast support network through the wider Growth Company, in turn helping Greater Manchester businesses to bounce back with confidence through an uncomplicated, digitally driven and quick solution to unlocking finance.

The loans, which are 100 per cent guaranteed by the UK Government but funded by GMCA, are estimated to be eligible for approximately 98 per cent of Greater Manchester SMEs. As with the Coronavirus Business Interruption Loan Scheme (CBILS), no interest will be due on Bounce Back Loans for the first 12 months, with an interest rate set at 2.5% per year after the first year.

The GMCA Fund targets eligible SMEs if their own bank is not an existing provider of the scheme, providing Bounce Back loans of £2,000 to £50,000 packaged with integrated business support in a local approach unique across the UK, provided by other Growth Company businesses.

Andy Burnham (pictured), Mayor of Greater Manchester, said:

Innovation and resilience have been cornerstones of Manchester’s history – an approach that is needed now more than ever. We have a duty to protect and support our SMEs through this crisis, which means easy access to vital funds. The partnership between GMCA and GC Business Finance has historically proven to be beneficial for the Greater Manchester business community and more recently is a massive step in the right direction, taking control back into the hands of local businesses and ensuring a bespoke approach to lending that improves efficiency and helps to ensure survival.

“While it is a good first step, it is only that. To enable us to build back better, we need to make this style of funding available to all businesses across the UK, taking the burden off traditional banks and placing greater emphasis on diversity of funding.” 

Cllr Elise Wilson, Leader of Stockport Council and GMCA Portfolio Lead for Economy and Business, said:

It’s been an incredibly challenging year for Greater Manchester’s SMEs, with a second lockdown bringing further difficulty. While the ongoing emergency business loan schemes have provided a vital lifeline to many, we know there is more work to be done to help those businesses that fall between the cracks.

“The GMCA has partnered with GC Business Finance to support the city-region’s SMEs throughout the pandemic and working with a local partner to deliver this new fund brings numerous benefits. Businesses applying can expect a digital application process which is easy to navigate, a quick decision and wraparound business support to maximise the effectiveness of the loan.

“Once applications are open, we’d urge any eligible local business to contact GC Business Finance to discuss the support on offer.”