LDA to offer ‘last resort’ funding to small businesses

Boris Johnson yesterday launched a £3m loan fund to help the capital’s small and medium businesses secure financing during the current recession.

The fund, which forms part of the Mayor’s previously announced Economic Recovery Action Plan, was developed by the  London Development Agency (LDA) and is designed as a ‘last resort’ for companies.

LDA officials say they expect applicant companies to have exhausted all mainstream options for finance and to have detailed business plans. Chief Executive, Peter Rogers, said the fund would “provide established businesses with loans of up to £50,000 for up to five years, repayable on a fixed interest rate.”

Johnson said he was “doing everything in my power to help the capital’s small and medium sized companies during these tough times.”