Struggling small and medium businesses will benefit from £3m in loan funds, the Mayor of London has announced.
The money is designed to help businesses finding it difficult to secure finance during the recession.
The fund, part of the Mayor’s economic recovery action plan, is designed to bridge the funding gap currently being experienced by many small companies which have struggled to get backing from banks.
The Mayor said the loan is a ‘last resort’ for companies and hopes it will help business keep running as well as create jobs in London.
He added: “It is vital that we continue to do all we can to protect jobs, up-skill our staff and look ahead so that London as a whole emerges from the recession in a strong position, with our renowned image intact.”
Established businesses will be able to apply for loans of up to £50,000 for up to five years, repayable on a fixed interest rate.
Bank of England reports show there has been an increase in credit tightening due to the downturn in the economy, making banks more cautious to provide loans and small to medium businesses.
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