London Mayor Boris Johnson has today announced a £25m fund to help small businesses in the city grow.
The fund is part of a £111m government investment to revive London’s economy.
The Mayor is hoping to get a private financial institution to match the investment, creating a £50m fund to help provide loans and equity for small and medium-sized businesses.
Steve Warwick from The Federation of Small Businesses said: “Our research shows that five in ten businesses in London were turned down for a loan or overdraft in the first quarter of 2013.
“This needs to be addressed as a matter of urgency which is why it is vital that the scheme announced today is attached to the soon to be created Business Bank which will house a myriad of similar funds.”