Shares digital

Investment banking minnow Shore Capital (SGR) is to launch two venture capital trusts (VCTs) to provide secured loans to small businesses. As high street banks tighten up their lending criteria following the credit crunch, Shore believes there’s a golden loan-making opportunity. VCTs – which afford their investors generous tax breaks to promote investment in small business – more typically take equity stakes with their cash. Shore will earn a 2% annual management fee for running the trusts and will structure loans so, in the event of a liquidation, the VCTs have first claim on assets.

Shares says: A novel idea to provide modest, well-protected returns in a challenging investment climate. The VCTs should be popular. SK