Council funded loans available for growing businesses

A Merton Business Loan Fund event is being held on 20 November for business finance advisors to find out how they can help their customers grow their business with assistance from the council and GLE oneLondon (GLE).

Taking place at Grenfell Training and Services in South Wimbledon from 6.50-8.30pm, the event is being run for accountants, bankers and finance advisors to find out about the Merton Business Loan Fund (MBLF) and financial support and advice that is available to their customers from Merton Council.

In partnership with leading business finance and support organisation GLE, Merton Council launched the dedicated £600k loan fund last year for growing businesses, part-funded from the Regional Growth Fund (RGF), which is provided through the Community Development Finance Association CDFA. The fund provides loans of between £10,000 and £20,000 to eligible small businesses with growth potential and viable business plans that are unable to raise the required funds from banks and other commercial sources. Every application is assessed on its merits and the scheme includes no automated credit scoring as well as competitive interest rates and free, personalised, impartial support from a Finance Specialist to help eligible businesses throughout the entire application process.

This fund is available to businesses that have been trading successfully for at least 12 months and are located within the borough of Merton. Eligible businesses must also employ between two to 49 staff and have an annual turnover of less than £5m and have been unsuccessful in obtaining finance from conventional commercial sources such as banks. For more information visit the GLE website.

As well as the Merton Business Loan Fund, the council offers another business loan scheme called the Micro Finance Loan which provides small loans of between £500 and £10,000 to help people start up small businesses or become self-employed – as well as help established micro businesses grow. The Micro Finance Loan Fund is delivered in partnership with Fredericks Foundation – for further information visit the Fredricks Foundation website.

Leader of the Council, Councillor Stephen Alambritis said: “The council is committed to supporting businesses in Merton so they can develop, grow and create new jobs – which is why we are funding business loans and other business support schemes. It will also give businesses a chance at a time when banks aren’t readily lending to them. By providing these loans and other business support we will give businesses that are ready to expand the chance to do so.”

Umer Mansoor, owner of Morden-based business Construction Helpline Ltd, who successfully applied for a loan from the MBLF said: “I’m glad I applied for the loan as it has allowed my business to grow and I’ve received valuable support and advice from Merton Council and GLE. What I really valued was that the Finance Specialist came to our offices, sat down with me, and understood the nature of our business. Although the documents I was required to fill out were similar to the ones needed by the bank, I felt much more at ease thanks to the help I received. I would definitely recommend other small businesses looking to grow to consider applying for a loan from the MBLF.”

To attend the MBLF event, businesses should contact Denitsa Todorova before 18 November by emailing or calling 020 7940 1577.


Notes to editors:

  1. Grenfell Housing and Training is located at 16-20 Kingston Road,  South Wimbledon, SW19 1JZ
  2. About the CDFA

The Community Development Finance Association (CDFA) is the trade association for Community Development Finance Institutions (CDFIs) that provide finance and support to help enterprises and individuals develop and create wealth including support to disadvantaged communities.

  1. About RGF

The Regional Growth Fund (RGF) is a £2.6 billion fund operating across England from 2011 to 2016. It supports projects and programmes that are using private sector investment to create economic growth and sustainable employment.