An initiative has been launched to help local businesses affected by foot and mouth disease.

Rural businesses in Oxfordshire and Buckinghamshire 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.

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

The Government has also announced greater flexibility on existing loans.

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

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

"By making it 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 Small Loan Guarantee Scheme, by contacting Business Link on 0845 606 4466.