A NEW loan fund will help local people who want to establish "micro businesses".

The Bolton Community Finance Partnership, launched at Bolton Arena on Friday, plans to help would-be window-cleaners, mobile hairdressers, beauticians, gardeners and others.

The small loan fund -- up to £2,000 -- is due to start operations in March. It is one of several initiatives from the Partnership, a unique organisation which could eventually prove to be a model for others round the country.

Recent research revealed that new businesses have difficulty securing funding for their venture because finance companies and banks set a minimum amount to be borrowed.

The Partnership believes providing small loans at favourable rates will help individuals become established in their chosen field.

Bolton Council, Bolton Business Ventures, Bolton and Bury Chamber and Business Link North West are the main organisations involved in the fund.

Treasury Minister Ruth Kelly, who is the MP for Bolton West, said before the launch ceremony: "It is really important to give people the first step up the ladder they need. I hugely welcome this initiative. It gives people opportunities they would not otherwise have."

The Partnership's other ideas include a borough-wide Credit Union and a Money Skills Service (call 01204 335360) which works with tenants, community groups and financial service providers to plan and deliver a variety of training and learning activities.

Cllr John Byrne, chairman of Bolton Community Finance Partnership, said: "Finance is a minefield of information and products that are more difficult to access than people might think.

"If you don't have the right credit rating, or anything to use as security, it is easy to find yourself excluded from financial products and turn to costly sources of credit instead."

Further information about the small loan scheme is available from Anne Marie Gill on 01204 331504, or by sending an e-mail to gillam@bolton.gov.uk