HSBC has announced that it is participating in the Government's Regional Growth Fund (RGF), with HSBC Business Banking being allocated £25 million from the fund. It will use the funds to support small and medium-sized businesses in England that are recruiting new employees, to purchase assets such as machinery and vehicles. 

HSBC is participating in the Regional Growth Fund, a £1.4bn fund operating across England from 2011 to 2013. The fund supports projects and programmes that lever private sector investment creating economic growth and sustainable employment. It aims particularly to help those areas and communities currently dependent on the public sector to make the transition to sustainable private sector-led growth and prosperity. 

The bank is creating an 'Assisted Asset Purchase Scheme' that will enable qualifying businesses to receive additional funds of up to £500,000 to put towards the acquisition of assets, which would not be funded under normal commercial terms. 

In order to qualify for RGF funds a borrower must be able to demonstrate that they will create additional employment, have a turnover of up to £25 million and that the asset purchase would not go ahead without RGF support. The Assisted Asset Purchase Scheme will provide a grant of up to £25,000 for each additional full time positions created by the acquisition of a new asset. 

Jacques-Emmanuel Blanchet, Head of Commercial Banking, HSBC UK said: "I am delighted that the bank is participating in the Government's Regional Growth Fund." 

Jacques-Emmanuel adds: "HSBC is committed to supporting strong viable businesses and our Assisted Asset Purchase Scheme highlights this. The scheme will provide critical support for businesses that are looking to grow and recruit, enabling them to purchase the assets they need, to achieve their goals." 

Business Minister Mark Prisk said: "HSBC's Assisted Asset Purchase Scheme will help SMEs that want to invest and create jobs - but that cannot currently access commercial funding. They will deliver a shot in the arm to local communities and help small businesses drive local growth. 

"100% of the RGF funding will be provided as grants to small businesses with the bank employing their regional network to administer the scheme for free." 

The cost of administering the bank's allocated funds will be covered by HSBC. The £25 million of government investment is coming from round one of the Regional Growth Fund. Any interest earned on this investment will be used for further grants or returned to the government. 

For further information on the HSBC Assisted Asset Purchase Scheme, business owners and finance directors should visit http://www.hsbc.co.uk , call 0845-607-6007 - option 1 or visit their local HSBC branch.