East London Small Business Centre

The loan fund, launched by the Mayor last week (12^th June 2008), will be co-managed by East London Small Business Centre (ELSBC) and GLE oneLondon – two of the leading enterprise agencies in London. It is designed to provide financial relief to existing businesses during this economic climate, helping London’s SME’s expand, retain their workforce and create new jobs.

Part of the Mayor’s Economic Recovery Action Plan and funded through the London Development Agency (the LDA), the Economic Recovery Loan Fund is available to London’s small and medium sized businesses. The businesses must have a viable business plan, been trading a minimum of 12 months and have been unable to secure finance from mainstream banks - due to tight credit.

Two ELSBC clients have already been successful in securing finance from this new fund.

Faisal Haque, funder of Wrap It Up said: “We are a small sandwich business looking to grow.  We are delighted to have the chance to borrow the money we need at rates that are guaranteed.  This will allow us to set up a new branch and increase our sales.”

Rob Gribbin, owner of an east London based online ticketing agency Clubtickets said: “Without the loan from ELSBC’s new fund, we would find it hard to get the money we need to expand. We will now be able to plan our growth and build our business.”

During the launch last Friday the Mayor said: “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.”

As part of ELSBC’s business support services all the loan applicants are supported through intense one to one business advice sessions, whereby a dedicated business advisor will help them work on their business plan prior to applying for the loan.

Tim Heath, ELSBC’s Chief Executive said: “The loan comes at a time of most need to many businesses. We will consider each business on its merit and viability, as well as provide business support ensuring they succeed.”

ELSBC has also been appointed as the lead provider and supplier of the LDA supported pan London Access to Finance programme. The programme will complement the loan fund and help entrepreneurs prepare a viable business plan for securing the loan and access further finance from banks and private investors.

Published June 2008