Small businesses who have had difficulties securing investment will share £100m of a ‘first of its kind’ fund, the Mayor of London Sadiq Khan has announced.
The Greater London Investment Fund will be available to businesses in the cultural and creative industries, financial and business services, life sciences, low carbon and environmental goods and services, tech and digital, and tourism sectors.
As well as investing in 170 companies, the fund will secure at least another £103m in private sector investment and create 3,500 new jobs in the capital.
While London has a world-leading financial ecosystem, some small and medium-sized enterprises (SMEs) struggle to access the funding they need to grow as lenders often tend to focus on larger companies with a more established credit history.
The funding will come from a number of sources:
£35m of European Regional Development Fund;
£50m from the European Investment Bank;
£7m from the London Waste and Recycling Board (LWARB); and
£11m in returns from previous investments made through Funding London (on behalf of the Mayor).
The Mayor of London, Sadiq Khan, said: ‘Small businesses are the lifeblood of our economy – they account for more than 99 per cent of all businesses in the capital and support more than half of all jobs.
‘London is the best place in the world to start and grow a business – but even in such a dynamic economy as ours, some small entrepreneurs can’t access crucial funding.
‘I promised to be the most pro-business Mayor that London has ever had and that’s why we’re allocating a record amount to SMEs who can create jobs and play a crucial role in our economy.’
Small businesses can now apply by contacting either of the independent fund managers – MMC Ventures and The FSE Group – directly.
Photo credit – Pixabay.