Business investment scheme set to continue
Rosebud Finance supplies loans to - and invests in - companies across the county. Loans and equity funding are available, ranging from between £50,000 and £1m.
Lancashire County Council’s cabinet voted to advertise a new contract for a managing agent to deliver the scheme between April 2019 and March 2023.
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Hide AdRosebud Finance has an annual budget of up to £2m and offers bespoke investment deals targeting 5 key sectors of the Lancashire economy - aerospace, advanced manufacturing, creative and digital, energy and environment and finance and professional.
Businesses receiving funding can use it for capital investment or day-to-day revenue spending. But there are restrictions - the money cannot be used for purchasing new buildings or vehicles, repaying debt or saving companies from collapse.
The council is now searching for a contractor whose responsibility will be to identify and work with businesses which would potentially make for sound investments.
Their advice is then given to the board of Lancashire County Developments (Investments) Limited (LCDL) - a wholly-owned subsidiary of the council - which makes the final decision.
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Hide AdThe contractor monitors LCDL’s investment portfolio, ensuring repayments are made on time and identifying any businesses which may be in need of additional cash.
A series of performance indicators will also be tracked to analyse how businesses in receipt of loans or investments are doing.
The value of the contract to run Rosebud Finance is £260,000 per year and a bonus scheme will be available for meeting key investment targets.
The contract will be awarded based on a split between quality and financial criteria of 65 to 35 percent.
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Hide AdWithin the quality criteria, 10 percent will be determined by the social value offered by the contractor. This will include the promotion of training and employment opportunities for Lancashire residents, as well as enhancing the capacity and sustainability of the voluntary sector in the county.
The financial criteria relates to an applicant’s ability to demonstrate value for money.