Other News
Mayor of London announces £3 million loan fund for small businesses
Sector:Central Government
Date Created::Fri 12th Jun 2009, 11:35:19
Source:24 Dash
Link: www.24dash.com
The Mayor of London announced a £3 million loan fund to support small businesses in the capital.
Boris Johnson said: "The real problem with the economy at the moment is so many good businesses cannot get the credit they need."
The new fund, developed by the London Development Agency (LDA), will offer loans of up to £50,000 for up to five years repayable on a fixed interest rate.
The mayor made the announcement at the maternity wear store Pretty Pregnant, in Baker Street, central London, which has benefited from a loan.
Store owner Evelyne Callens said the money had been used to open another shop in the King's Road, west London.
She said: "When we needed the funds to expand, the LDA's loan scheme allowed us to borrow the money we needed to secure the new shops we wanted. I am sure other small firms will find the new scheme can provide a welcome boost to their business."
Mr Johnson said the loans were available to businesses which could provide detailed business plans and prove they had exhausted all mainstream sources of finance.
He said: "Selling maternity wear at the moment when Londoners are hard at it with lots of babies being born is a great business."
The loans are available to businesses based in London, which have been trading for at least a year, and have less than 250 employees or annual sales of £45 million and below.
