Mayor's fund to help 11,000 small firms

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It is hoped 1,100 jobs will be created and another 2,700 saved in small firms feeling the effects of the recession.

The money comes from the European Regional Development Fund and is to be given to 32 projects across the capital run by organisations including councils, colleges and charities. The projects aim to help businesses expand.

Mr Johnson said: "These projects are vital to supporting London's businesses. Small businesses are critical to London's success and play a significant role in our economy. More importantly the firms supported through this funding are going to be the springboard to economic growth and prosperity once the upturn arrives."

Projects which have already successfully bid for cash from the London Development Agency include the Heathrow Area Supply Chains which helps more than 250 small and medium-sized firms in west London gain access to major local supply chains.

The European fund programme will invest £300million in boosting London's competitiveness over the next six years, with half coming from EU funds.