Business Growth Fund 'will help companies expand'

Date: 27/05/2011

Enterprises hoping to adopt new 020 numbers and relocate to prime central London office space could take advantage of a government subsidy.

The £2.5 billion Business Growth Fund is being introduced to help small to medium-sized enterprises (SMEs) expand by offering them cash in return for a minority stake.

Speaking on the BBC's Wake Up to Money podcast, chief executive of the Business Growth Fund Stephen Welton explained the organisation will work with firms to understand their "long-term opportunities".

Companies will be awarded between £2 million and £10 million through the scheme, which the expert described as being a "significant" amount of capital for SMEs.

It is hoped this will "give them the confidence to look at longer term expansion plans which is something the economy needs", Mr Welton added.

Purchasing 0207 numbers when growing their enterprise could ensure SMEs promote a London presence, thus attracting plenty of clients.

This comes after director-general at the British Chambers of Commerce David Frost encouraged banks to improve their lending to businesses as many have missed targets.