Loan service helps get developer back on track
Pearson Quality Homes, a Wigan-based developer of bespoke residential homes, has secured a five-figure loan from specialist social impact lender, GC Business Finance (GCBF), through the Bounce Back Loan Scheme (BBLS) funded by Greater Manchester Combined Authority (GMCA).
The company purchases sites across Lancashire to build high-quality homes in rural locations.
As a result of the national lockdown, the firm’s first development in Wrightington was delayed by 13 weeks, with social distancing restrictions making it difficult for staff and suppliers to access the site.
To counteract the negative impact of COVID-19, and to get the Wrightington development back on track, Pearson secured a five-figure loan from GCBF, an accredited BBLS provider for businesses across the North West.
It will use the funds to complete its Wrightington development and is now considering new sites across Lancashire as it looks to get its business plan back on track.
GCBF is an alternative finance provider for businesses unable to obtain finance through their regular bank. It offers loans ranging from £500 to £500,000, including CBILS, start-up loans, equity investment, export finance and microfinance.
In response to businesses reopening and the second wave of demand, GMCA pledged £10m emergency funding through BBLS, delivered by GCBF, making it the first local authority to back a funding provider.
Ian Smethurst, finance director at Pearson Quality Homes, said: “For businesses such as ours, this has been a particularly difficult year.
“We found ourselves short on funds to finish off this build and had struggled to secure funding through high-street providers.
“The loan has supported us in getting our Wrightington development back on track and up for sale and I am looking forward to seeing it finished. Moving forward, Pearson will continue to look for sites to develop in rural locations in the North West.”
Jonathan Nelson, Senior Loan Manager at GC Business Finance, said: “The uncertainty of this year has made it even more important to support local businesses, such as Pearson, who have been hit hard by the fallout of COVID-19.
“This is exactly why we are so glad that the combined authority has committed to backing us with funding to provide bounce back loans – the BBLS scheme has been vital for so many businesses in the North West, particularly for those unable to secure funding through their usual providers.”
Original article: https://www.thebusinessdesk.com/northwest/news/2071890-loan-service-helps-get-developer-back-on-track