A Bradford-based loan fund that helps small businesses spurned by the banks has finally got its hands on £6 million of Government funds – more than two years after being promised the cash.

Business Enterprise Fund head Stephen Waud has described the process of getting the cash boost as ‘a nightmare’ and ‘like pulling teeth’.

As revealed in the Telegraph & Argus in November, 2011, BEF had already been waiting for the £6 million from the first round of the Government’s Regional Growth Fund when Mr Waud enlisted the help of Bradford East MP David Ward to chase up the cash.

Mr Waud said: “The T&A deserves some of the credit for helping us get this money after highlighting the problems we were having and we’re also grateful to David Ward (Lib Dem MP for Bradford East) for his support, This money is from the first round of EGF funding – and the Government is now on the fourth tranche.

“The process has been a real nightmare and like pulling teeth. It seems to have taken forever to get the money through the system. However, we’ve now got the extra funding now and that will enable us to support more businesses.”

He said the extra money marked the first stage of trebling BEF’s social enterprise business over the next three years and enable BEF to extend lending to 200 small and medium businesses in 2013. Last year the fund loaned £2 million and plans to increase this to £4 million this year and to £6 million in 2014.

Earlier this year BEF, in Little Germany, opened a second office in Leeds to extend its reach and since the beginning of 2013 has expanded its team by 35 per cent to 15 staff.

Mr Waud also revealed that BEF had joined with the British Chambers of Commerce to pioneer a fund to support 100,000 smaller firms across the UK.

He said: “BEF has been instrumental in submitting a further bid to the Business Bank for a national £120 million wholesale fund as demand for our assistance – and support from other similar organisations – continues to soar, despite bank SME lending remaining low.

“While the need for finance continues to grow, the gap between lending and demand remains huge with a recent survey showing that in the Yorkshire and Humber region, this is as much as £120 million a year.”

BEF has also established a new £2 million business incubator centre providing 19 units for up and coming businesses. The City Hub has been established in a renovated wool warehouse in Little Germany, which will be officially opened by the new Lord Mayor of Bradford Coun Khadim Hussain next month.