More than half a million pounds has been awarded to small businesses in the East Midlands in less than a year by a loan fund designed to help entrepreneurs overcome difficulties in raising finance from other sources.

EnterpriseLoans East Midlands launched in June 2008 to provide small loans for businesses in the region and has since provided £556,650 to 39 recipients.

Loans have been awarded throughout the East Midlands, to a broad spectrum of companies, both established and start-ups, across a wide range of sectors including marketing, publishing and catering.

Established by East Midlands Development Agency (emda) and managed by First Enterprise Business Agency (FEBA), EnterpriseLoans East Midlands aims to create and safeguard 1,400 jobs and assist 1,000 businesses between 2008 and 2018, offering loans of between £3,000 and £20,000.

"I am delighted that in its first year, EnterpriseLoans East Midlands has already helped a wide range of businesses in the region," said John O'Reilly, emda's Business Support Director.  "Small businesses are a core element of the economy and it is important to support them, particularly through the current difficult conditions. Viable and growing businesses in the East Midlands often need help accessing finance, and this is why initiatives such as EnterpriseLoans are important in helping to alleviate some of the problems faced by entrepreneurs, start ups and growing companies, particularly those from disadvantaged communities wanting to establish their own businesses. The EnterpriseLoans programme will also help businesses in the longer term and hundreds of entrepreneurs will be supported over the next decade."

Quamar Zaman, FEBA's Chief Executive commented: "As a support agency, FEBA has pledged £3 million in addition to emda's £2.6 million, towards helping fuel economic growth, and in less than a year of operation EnterpriseLoans East Midlands has been incredibly well received.  

"With funding for small businesses becoming an increasingly difficult issue because of the added risks from the economic downturn, EnterpriseLoans is an excellent initiative for the East Midlands.  We will continue to build on our strong track record of delivering alternative funding to people who are struggling to access finance or require working capital to start or grow their viable business plans.

"We would encourage business people in the region with vision, commitment and aspirations of growth to contact their local Business Link advisor."

Existing entrepreneurs or individuals who are thinking of starting up in business should contact Business Link on 0845 058 6644 or visit www.businesslink.gov.uk/eastmidlands for help and advice.

For more details about EnterpriseLoans East Midlands, telephone 0845 602 7355 or visit www.enterpriseloanseastmidlands.co.uk