London loan fund unveiled
Jun 16 2009
The mayor of London has launched a new loan fund designed to support small and medium-sized businesses through the recession.
As part of Boris Johnson's Recovery Action Plan, a £3 million fund will be established to help small companies which are having difficulty accessing traditional sources of finance, such as bank lending.
Delivered by the London Development Agency (LDA), the fund is intended as a last resort for firms and will provide them with a fixed-interest loan of up to £50,000, which is repayable over five years.
Johnson comments: 'This new fund will be a welcome relief for many businesses allowing them to expand and grow and continue their vital contribution to the London economy.'
LDA chief executive Peter Rogers adds that the capital's small firms could find that the initiative makes 'all the difference to their success' in the difficult economic climate.
The move follows figures from the British Bankers' Association, which claimed that its members increased their lending to small businesses by £287 million during April.
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