M&B franchisees open pub with Enterprise Guarantee help

Two Mitchells & Butlers franchisees have joined forces to open a third pub as a joint venture with help from the Government-backed loans scheme.

Tony Later and Brendon Daly are believed to be among the first licensees to secure funding via the Enterprise Finance Guarantee Scheme.

They have re-opened the shoulder of Mutton in Lichfield, Staffordshire, after a £200,000 refurbishment and focused on locally grown produce.

Later is the M&B franchisee of the Littleton Arms in Penridge and Daly runs the Inn on the Green in nearby Acocks Green.

The pair secured a £120,000 loan from RBS using the finance scheme, which sees the Government guaranteeing 75% of loans.

Later said: "In my position it would have been impossible to secure the funding for my new business venture without the Enterprise Finance Guarantee Scheme.

"I knew the proposition made business sense but had no available security to offer the bank. Mike Elphick, my commercial manager at NatWest in Wolverhampton suggested this new Government backed scheme, which was the ideal solution."

A M&B spokesman said: "The scheme supports bank lending for up to ten years, which fits perfectly with the franchise lease term."

- What's your experience of the Enterprise Finance Guarantee Scheme? Email john.harrington@william-reed.co.uk.