Council bosses in Dudley have  announced that they are establishing a £1 million loan fund that will help local businesses to expand.

Dudley Business Loan Fund will form a two-year programme, which Dudley Council has set up in conjunction with the Black Country Reinvestment Society (BCRS), to help Dudley’s small and medium sized businesses.

The fund will offer loans from £10,000 to £50,000 and it is expected to boost Dudley’s economy and create and protect local jobs.

Companies with up to 250 employees and a turnover not exceeding £5 million can apply for the loan under the scheme with repayment periods of one to five years and no early repayment penalties.

Councillor Les Jones, leader of Dudley Council, said: “There is a lot going on in Dudley at the moment and we are seeing tremendous amounts of inward investment.

“This scheme is recognition of the need to underpin this investment by ensuring that our existing business base is robust, and that we help it to expand and diversify.”

Councillor Angus Adams, cabinet member for regeneration, said: “Dudley Council is working very closely with the BCRS to support loans for local businesses.

“Today we have launched details of the Dudley Business Loan Fund, which we will hope will demonstrate how much we value the vital role small companies’ play in the borough’s economy.