Small business in the East Midlands will have the opportunity to receive finance of between £50,000 and £250,000 for a maximum of three years from a new £5m fund.

The East Midlands Development Agency (EMDA) will offer loans to small and medium-sized enterprises to help address the lack of credit from banks and other traditional sources.

The EMDA will provide finance to SMEs For companies to be eligible they must have been operating for at least six months and be able to demonstrate and show sound management and business plans.

"The introduction of this fund means that viable businesses now have the opportunity to obtain the working capital they need to sustain and develop their activities during the current economic downturn," said Jeff Moore, chief executive of the regional development agency.