Small businesses could benefit from a slice of a £100 million fund set up by the Mayor of London.

The money set aside by Sadiq Khan can be bid for and is aimed at giving smaller businesses “the helping hand” they need to “face up to the challenges caused by prolonged economic uncertainty”.

The new fund, called the Greater London Investment Fund, aims to support small businesses that are struggling to attract investment.

It is thought the money will benefit up to 170 companies and lead to the creation of 3,500 new jobs in the capital.

In addition, a £14 million portion of the fund has been set aside to be allocated to businesses who support London’s transition to a more sustainable circular economy, which aims to ensure resources are kept in use for as long as possible.

A significant proportion of the £100 million funding pot has come from European Union sources, including £35 million from the European Regional Development Fund and £50 million from the European Investment Bank.

Local small businesses can apply for investment packets from £100,000 to £2 million by directly contacting either one of the two independent fund managers – MMC Ventures and the FSE Group.

Jennette Arnold, Waltham Forest’s London Assembly Member, said: “Small businesses are vital for creation of jobs and for boosting growth in the capital, but clearly need and deserve more support.

“This new investment from City Hall should provide the helping hand that local small businesses need to face up to the challenges caused by prolonged economic uncertainty, in part brought on by the Government’s shambolic handling of Brexit.

“It has also been positive to see the Mayor act upon his environmental priorities and allocate millions into facilitating London’s transition to the circular economy.

“It should be reiterated that a significant portion of this funding comes from the European Union. However, the Government have not been forthcoming about their specific plans to replace these investment streams in London.”