A new initiative has been launched to help local businesses affected by foot-and-mouth disease. Rural businesses in Oxfordshire suffering cash flow problems due to the effects of the disease will now be able to apply for loans of up to £250,000 through the Government's Small Firms Loan Guarantee Scheme (SFLGS)

The scheme, which is already open to manufacturing businesses, has now been extended to cover retail and tourism, including bed and breakfasts, holiday cottages and caravan parks.

The Government has also announced greater flexibility on existing loans.

The maximum time for repayment of loans will now be increased from two to three years.

Mr Graeme Finch, chief executive of Business Link Milton Keynes, Oxfordshire and Buckinghamshire, said, "this extension to the Small Loan Guarantee Scheme is a further way in which Business Link can provide a significant targeted support to those businesses directly affected by foot-and-mouth disease.

"While we recognise that there are no quick fixes, we hope that this announcement will alleviate some of the problems that businesses in the region are facing now.

"By making it financially easier for firms to get financial support, and by treating with urgency all applications for loans from businesses affected by foot-and-mouth disease, we hope we will be able to help those businesses most badly affected at this difficult time."

If the owners of a business took out a £15,000 loan under this scheme at an interest rate of 8.75 per cent for example, during the capital repayment holiday, they would pay back just £30 a week, including the premium.

Businesses can quickly and easily apply for the scheme, by contacting Business Link on 0845 6064466.