Small businesses are to receive a lift through a new loan fund launched by Shropshire Council which aims to help companies that are in need of finance when high street banks are unable to help.

The fund, delivered by Impetus - a community development financial institution – on behalf of the council, will offer loans from £5,000 to £50,000 with terms from six months to five years.

Loans can be used for business expansion, from capital purchases (property and equipment) to bridging and working capital.

A total of £2 million will be available through the fund, a figure achieved from the collective resources of Impetus and further external funding.

In order to obtain a loan from the fund, businesses will need to provide a viable business plan and evidence that they have previously approached a bank for a loan.

Councillor Keith Barrow, Shropshire Council’s leader, said: “Launching this new loan fund with a commitment of £1 million demonstrates how much we value the vital role small companies play in the county’s economy. Around 90 per cent of businesses in Shropshire employ ten or fewer people and it is this group that statistics show is struggling to get finance from high street lenders.

“Through this fund we hope to help around 100 new and existing small businesses over the next four years which will, in turn, create and secure jobs for local people.”

George Mackison, Director of Operations for Impetus, added: “Impetus looks forward to administering the loan fund on behalf of the council and will work closely with them to ensure that the fund is promoted effectively and supports a diverse array of Shropshire businesses.”