Loans company boosts economy

Hubbard's Pork Shop has doubled its turnover since receiving investment from Foundation East

Hubbard's Pork Shop has doubled its turnover since receiving investment from Foundation East

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COMMUNITY finance company Foundation East has calculated for every £1 of local investment the organisation returns £3.78 of value to the community.

Foundation East provides loans of up to £50,000 to businesses in the East of England that have been refused bank finance.

The organisation uses a panel of business people to assess loan applications based on the business plan, taking into account human factors which may determine the success of a business.

A study by the organisation shows that its support of 45 companies protected 267 jobs and created 103 positions, generating more than £1.9 million to the economy in terms of National Insurance and tax alone.

One of the success stories of the scheme is award-winning butchers Hubbard’s Pork Shop, in Bury St Edmunds.

David and Caroline Hubbard were refused a loan when they approached banks with their plans.

But with the support of Foundation East, the business is booming and its turnover had doubled.

David said: “I had always wanted to set up my own butchering business. The problem was that the banks were just not interested in lending us money.

“The whole thing was farcical. They couldn’t even tell us why we were being refused funding.

“Without foundation East, we would not be where we are today.”

Foundation East chief executive Katy Ford said: “Over recent years decisions have increasingly been made by computer and this has ignored many tangible elements, such as management skills and commitment of the work force that can help a business succeed.”