It’s good to see that NatWest and RBS are back attempting to support the small business community across the country. 

They have just announced two initiatives – the first is a fund of one billion pounds aimed at the small business borrower, and the second is the launch of eight accelerator hubs to be opened across the country over the course of the next few years.

Small Business Fund

In respect of the small business fund, £50m has been allocated to East Anglia – that is Suffolk, Essex and Norfolk – for fixed rate loans to new and existing customers of between £1,000 and £250,000, which will not carry an arrangement fee.

Bank managers are continually protesting that they are open for business, and it’s nice to see one of the banks with big problems from the recent past make such a positive statement in respect of small local businesses.  That is not to say that borrowing money from them is going to become easy, as any proposals will have to be judged on their own merit, and I have no doubt that the bank will be applying very strict risk criteria!  There is no excuse for us not to give it a try, however!

Accelerator Hubs

The second initiative is a much longer term one, and at least initially does not directly benefit East Anglia.

The hubs will be physical work spaces where up to 80 small businesses can be located subject to competitive selection. Mentoring, business advisers and the potential for growth awards will be available in addition to the normal office facilities.  This is being done in partnership with an existing accelerator organisation called “Entrepreneurial Spark”; this has (perhaps unfairly!) caused me a certain degree of amusement in that they are essentially a Scottish operation; who knows what might have happened had the voting a few weeks ago gone differently!

Six of the eight hubs have been announced; we are left to hope that one of the two remaining locations still up for grabs will be in our area.

At least they’re doing something!