Local entrepreneurs can get their hands on loans of up to £200,000 to help start-up and grow businesses, even if they have been refused by their banks.

The East of England Development Agency (EEDA) has loan programmes in place to help businesses looking to borrow between £500 and £200,000.

‘Small Loans for Business’ offers between £500 and £50,000 to regional businesses whose funding applications have been refused by the banks.

Alternatively, EEDA’s ‘Regional Growth Loan’ can provide up to £200,000 for small to medium-sized businesses that have a real potential for long-term growth and a workable business proposition.

The news comes on the back of the Federation for Small Businesses’ criticism of UK banking for small businesses and their call for “alternative sources of finance to be provided locally.”

Richard Ellis, chair of EEDA, said:

“Business owners often think that they have nowhere to turn if they are refused credit from the banks, but that’s not true. Here at EEDA, we are offering loans with flexible repayment terms to businesses with viable business plans – businesses which may just be seen as too risky for banks to support in the current climate.”

EEDA are also providing a helping hand to companies unsure of their funding or finance needs through their ‘Understanding Finance for Business’ programme. Delivered by St John’s Innovation Centre, it has been designed specifically to prepare companies for raising finance – whether through a bank, venture capitalist, business angel or even public-sector grant funding.

To find out more about regional loans and grants, or to register for the Understanding Finance for Business programme, visit www.eeda.org.uk/finance.