The BGF scheme would aim to help firms that have taken a CBIL – a coronavirus business interruption loan – but are struggling with repayments.
A Federation of Small Businesses London spokesman said: “Many small firms across London have taken a significant financial hit as a result of the pandemic and a vast swathe will have turned to debt finance to support them.
"But it is important that we see alternative forms of finance such as equity finance being offered to small firms as many are informing us that they don’t want to store up more future debt. It is vital that we give small firms wider options at this time as it is not simply a case of one size of finance fits all.”
BGF will seek to raise perhaps £7.5 billion from the City with the rest to come from the government.
