Loans of up to £15,000 are being made available to small Bradford firms which might otherwise struggle to get the finance they require.

The pioneering Bradford Enterprise Fund will be officially unveiled by Gerry Sutcliffe, Minister for Employment Relations, Competition and Consumers in the city this week.

Funded by the Treasury, it is being hailed as a major boost to companies which are keen to expand but need cash.

The scheme has come about following detailed research into barriers which prevent people from starting businesses, even though they may have a good idea.

It will be used to complement mainstream banking services and publicly-funded business support to either help start-ups or assist expansions.

And the cash will be made available on the proviso that training or mentoring is on-hand to increase the chances of the venture being a success.

Bradford Chamber of Commerce president Roland Clark said: "The fund will provide fully repayable loans to those who cannot raise sufficient money through more conventional sources. The launch is an essential briefing for small business managers at banks, accountants and others associated with brokering finance for businesses.

"It will also be useful for payroll advisers and the Inland Revenue, as well as mortgage brokers."

The scheme, which will be launched at the Hanover International Hotel in Bradford on Friday, has won praise from Minister for Small Business Nigel Griffiths.

"The Small Business Service, through the Phoenix Challenge Fund, has awarded more than £40 million to more than 60 Community Development Finance Initiatives and I strongly support the very important work that Bradford Chamber of Commerce is doing to encourage entrepreneurship and regeneration within disadvantaged communities," he said.

Organisations including Newlands Community Partnership, Bradford Trident and Regen 2000 SRB are also backing the loans initiative, pouring in extra funds for the benefit of local residents and businesses.

The launch will feature a buffet and networking event with proceedings chaired by Chamber vice-president Richard Wightman.

The fund will offer loans repayable over one to three years which, subject to terms and conditions, are available to those who have been refused other finance.

For information or details about the launch event, telephone (01274) 772777 or visit www.befund.org.