An extra £1 million is being made available by regional development agency Advantage West Midlands to help small businesses fighting the credit crunch.
This additional funding is being made available to help a range of lenders, who operate as the Fair Finance Consortium, meet the additional demand for loans.
Paul Kalinauckas, FFC chairman and chief executive of the Black Country Reinvestment Society, said: "This is a real boost. Members of the consortium can help reduce the impact of the credit crunch by ensuring that individuals planning to set up new businesses and grow existing ones can still get the money they need.
"Businesses seeking to borrow money do have to show they have viable business plans but by looking at these from a different perspective to mainstream lenders, members of the FFC are able to help when others say no."
Dr Richard Hutchins, corporate director of economic development at AWM, said: "Under-performance in productivity and business start ups are two of the key challenges facing our region's economy. Even before the credit crunch we were aware of many situations in which viable businesses could not secure the finance they needed from conventional sources. As a result we and the Regional Finance Forum have been working hard, alongside the private sector, to make money available not only through members of the FFC but also a range of other regional funds that we have helped to establish."
AWM support via the Grants for Research and Development and Selective Finance for Investment schemes, and through a variety of regional venture capital funds, saw almost 300 businesses secured finance totaling more than £27 million in the year to March 31.
Dr Hutchins noted: "This additional funding, alongside the Government's response to bank tightening by increasing the resources available to them to support lending with the Small Firms Loan Guarantee will help to en-sure that enterprises can continue to grow."