Small businesses based in some of London’s most deprived areas are set to benefit from a new £10 million loan fund, according to a new report.

The scheme is a joint venture between the London Development Agency (LDA) and Barclays Bank and will offer finance to start-ups, non-profit organisations and existing small businesses looking to expand.

Backed by Business Link for London and the Government Office for London, the cash is art of the ongoing Access to Finance programme, allowing successful applicants the chance to receive a loan of up to £250,000.

The announcement will be gladly received by struggling entrepreneurs as research, carried out earlier this year by the LDA, found that one quarter of businesses in the capital find difficulties in obtaining finance.

Stephen Timms, financial secretary to the Treasury, said: “The loan fund is very good news for London’s small businesses and entrepreneurs. It will ensure that funding is made available to encourage growth amongst businesses and improve prosperity for communities that need the most help.

“I am delighted to support the launch and all the partners involved."

The programme follows the ‘finance readiness’ programme, that, ran by Business Link for London, has already been successful in raising £10 million for 150 businesses to date.

Manny Lewis, chief executive at the LDA, said: “In our Economic Development Strategy we identified a gap in the market and the need for a fund specifically aimed at those who cannot obtain finance from other sources because they do not have a sufficient track record or they lack collateral.

“This new initiative will help ensure that more people are able to benefit from London's economic dynamism."

Businesses within the following boroughs are being welcomed to apply for a portion of the loan.

  • Barking
  • Bexley
  • Brent
  • Ealing
  • Enfield
  • Greenwich
  • Hackney
  • Hammersmith
  • Haringey
  • Havering
  • Newham
  • Tower Hamlets
  • Waltham Forest

To find out if your business is eligible, click here to go to the postcode checker on the Business Link for London website.