A small group of people are trying to develop a mechanism to develop a Private Fund what will provide loans to new start up companys in the SME sector. We feel that the standard current banking system does not allow such finance for different reasons to the new recession burdened entrepreneur. Some previously successful business owners have lost their ability to borrow due to bad credit ratings. Others new to unemployment may have a long life ambition to start a small business but lack the management skills and funding to get it off the ground. We feel there needs be a three angle approach to this problem. First it must be able to motivate and encourage people to start up viable businesses, create funding for these businesses and finally help these folk through the critical first year via mentoring. That alone I personally think would reduce the failure rates to single digit percentages. On the investment fund side we have many legal issues and have considered asking for a Government guarantee for investors. Thats where we are stalled. Personally I feel ordinary People will invest in this similar to that of their kids education if there was a government guarantee in place. Total transparency we feel would also be a critical factor here run somewhat like a Co-op. No Ivory towers, No ego`s, maybe run by about a dozen really smart managers. These would be aided by hundreds of part time mentors, and a modern IT system to help fill in the gaps. We believe this template could become the envy of the modern world. All comments are most welcome but please be constructive in opinions that may help move this thing to the next critical stage. Nothing is set in stone to date