Struggling firms in line for £10m

Businesses in the South West are in line for a £10m aid package to battle the economic downturn, but it will not be available until next year.

The loans from the Regional Development Agency (RDA), are targeted at companies which are finding it hard to secure funding from the banks.

The RDA said loans of up to £250,000 would be targeted at those firms with good business plans.

The cash will come partly from savings in regeneration and other projects.

Stephen Peacock from the RDA said the Business Loan Fund would help "businesses with ambition".

He said: "This is a very growth orientated scheme.

"The fund is designed to help businesses with good business plans to achieve their ambitions in a tougher credit environment."

He added: "We are not knights in shining armour. I'm sure people would say it was inappropriate for a public body to prop up businesses that were at risk of falling over.

"We need to get it right, after all this is taxpayers' money, but we are working as fast as humanly possible to get it out early next year."