Creative England is a non-profit organisation that supports British creative businesses and helps to promote their development.
The company has unveiled a new £24m investment fund to encourage the growth of companies that have large quantities of potential to improve.
Since 2012, Creative England has already invested more than £20m within the creative sector. Over 80 per cent of this funding concentrated in areas outside of London and the South-East.
The Creative Growth Finance will offer competitive interest rates and will provide up to £500,000 in investment for smaller businesses to help aid expansion.
Small and medium enterprises (SMEs) within the creative sector that require finance to help further their developments are the main focus for the latest project. So that the maximum amount of funding can be offered, Triodos Bank has decided to be involved in the process.
Investments of between £40k and £100k will be made available to companies that are looking to raise between £400k and £1m. Newer companies and proposals looking for lower amounts are likely to receive grants, whilst higher-value proposals and more established companies are likely to be offered loans.
Increasing business sustainability is the focal point of Creative England´s ethos. According to their research, 72 per cent of creative industry SMEs suffer from a lack of growth capital. The latest funding has been released in a bid to tackle this downturn since traditional lending to SMEs is now at an all-time low.
With consistent and substantial funding, it is believed that 600,000 jobs could be created within the creative industry by 2023.
“The prevalent issue of the UK’s scale-up gap is rife, partnered with a traditional lending structure that is hugely risk-averse, imminent change is required to catalyse growth at what is a critical stage of leap-finance,” said Creative England CFO Mehjabeen Patrick.
“The creative industries contain a myriad of viable investment opportunities, and for those with the expertise and knowledge to take advantage, we’re hugely excited to champion this much-needed initiative.
“Our regional focus and knowledge of the creative industries will undoubtedly allow many firms to access funding, that up until this point was unattainable or the preserve of non-creative sectors.”