COMPANIES in Worcestershire can now tap into a £3 million kitty to help them grow and prosper - thanks to Europe.

A new business loan fund has been launched in the county offering traders the chance to grab between £5,000 and £50,000.

The money has come from the European Regional Development Fund, and aims to help firms through the relatively flat economic waters.

It is being offered by a Pershore based finance body called Impetus, which is running the pot in conjunction with Worcestershire County Council.

The caveat is that is the cash must be loaned to businesses which have already been turned away by banks or other financial institutions for all or some of their funding requirements.

George Mackison, chief executive of Impetus, said: “This fund will help businesses to develop, grow and prosper.

“Our experience of working with businesses in Worcestershire demonstrates that they are finding it difficult when it comes to access to finance - this fund will help to address that problem.

“It is an exciting time and we are looking forward to providing businesses with the funding they need, which in turn safeguards jobs and provides people with new job opportunities.”

The county council has also welcomed the funds, which were secured after intense lobbying from politicians.

Since the recession there has long been fears that too many typical High Street lenders are reluctant to help small and medium sized firms which need loans to grow.

Councillor Simon Geraghty, deputy leader and the cabinet member for economic prosperity, skills and infrastructure, said: “We are delighted to be able to offer this help which is very much in line with our focus of supporting local businesses and creating new job opportunities, keeping Worcestershire 'open for business'.

“It is our top corporate priority and this scheme is one of many initiatives that the county council is bringing forward to help businesses to flourish which will ultimately lead to higher growth and more jobs.

“We hope businesses will take full advantage of the finance available to develop.”

To find out more visit business-central.co.uk or call 0300 123 14 40.