02 February 2010 16:45

£1 billion fund launched to help UK manufacturers

January the 25th saw the public launch of the UK Manufacturing Fund as part of RBS Business Lending Commitments, and the latest in a series of initiatives to support UK businesses.

What is the fund?

£1 billion of new lending to UK based manufacturing businesses across both the SME and Corporate markets.

Why are we launching it?

This sector has been hit particularly hard by the recession, and with 168,000 manufacturing companies employing more than 2.5 million people, it has a significant role to play in returning the UK economy back to health.

RBS wants to send a clear message of support to manufacturing customers by creating a fund designed specifically to meet their needs.

Manufacturing customers have told us they anticipate growing demand for their products and services during 2010 and beyond, so loans from the fund will help to finance investment for growth, enabling UK businesses to take advantage of opportunities as the market recovers.

How will the fund be used?

Loans are now being offered from both RBS and Nat West brands and give extremely competitive terms, including:
* a choice of two competitively priced fixed rate loans over two
or three years
* capital repayment holidays of up to three years.
SME Manufacturing Fund Pricing
Tranche No. 2 year rate 3 year rate Available
from Available to
1 3.40% 4.30% 14 January 2010 14 May 2010

Given the competitive nature of the rates , these are non negotiable Base and Libor related loans are also available but are priced differently to the above.
Arrangement/Other Fees
* A facility fee of no more than 0.75% of the facility will be
charged
* Security Fees will be charged as normal
Loans can be used for virtually any purpose and include :
* Supporting switching from competitor banks
* Business acquisitions
* General capital expenditure
* Working Capital
Loans are not available for refinancing of existing RBS/Nat West debt.
Other Eligibility Criteria
* The borrower must be trading in the UK
* The loan must be used to support activities within the
manufacturing sector
* MCOB regulated borrowing is not permitted for Fixed Rate Loans
* EFG support is not permitted with these Fixed Rates, as the
risk/security profile typically seen with EFG borrowers does not warrant borrowing at the preferential rates offered as part of the Manufacturing Fund.
* Loan Minimum £250,000; Maximum £25m


If you are interested please contact

Dave Furnival DIP CRM
Senior Business Development Manager
RBS/Nat West Business Banking
Mobile 07818 427117

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