MORE than 300 people have benefited from a pioneering money-lending scheme designed to stop the use of loan sharks in an East Lancashire borough.

Now the unique East Lancashire Moneyline scheme is set help small businesses star after securing £220,000 to give out in loans.

The Moneyline project opened an office in Lord Square, Blackburn, at the start of the year to offer loans and financial support to people who would normally be refused loans from mainstream banks.

With the backing of the Blackburn Regeneration Partnership, Twin Valley Homes, Blackburn with Darwen Council and other local organisations, Moneyline was designed to give people an alternative to loan sharks who had been operating on estates in Blackburn with Darwen.

Loans included short-term cash advances for people about to start work, money for people to attend interviews and cash for home improvements.

So far, more than 500 people have visited the Lord Square office, with 300 loans ranging from £65 to £10,000.

Now small businesses are set to receive a boost after £220,000 was awarded to the scheme by the Phoenix Fund.

Moneyline manager Ian Clough said: "This is a very positive step given that, rather like our stance on personal lending, we are prepared to support cases that the mainstream banks have refused to help.

"I feel that any help that can be given to new businesses is significant for both the individuals concerned and the economic development of the area. This is a great opportunity to get new businesses off the ground.

"It is becoming more and more difficult to get finance for a new business from the mainstream banks at the moment and I feel there is a big need for this service.

"We work in tandem with local business advisers and can provide loans for between £50 and £10,000 at high street bank interest rates, together with financial support where appropriate."

For more information about the types of loans available and for an application form contact Moneyline on 01254 696203.