A cash grant from Europe could help fill the vacuum left when Business Link shuts its doors.

It was announced yesterday that Leicester's share of the next European Regional Development Fund (ERDF) money would be £8.3 million, most of which will be used to help new enterprises.

The money, which follows 2008's ERDF cash, has been distributed between the most deprived areas of the East Midlands.

Mike Dalzell, Leicester City Council's head of economic regeneration, said: "Now that the Government has withdrawn Business Link funding and is providing an online service instead, companies aren't going to have the same access to face-to-face advice any more.

"We're not convinced a web-based service will be effective so we need an alternative. This ERDF money, while it will only solve the problem temporarily, will hopefully fill the hole for the next two years and more."

Based in Derby, Business Link has nine members of staff working in Leicestershire, advising new companies, but the service will come to an end next month.

Ted Cassidy, the assistant city mayor responsible for economic development, said organisations able to step into Business Link's shoes could include the city's universities.

He said: "The University of Leicester and De Montfort University have been looking at ways of supporting businesses in the future and, if we feel that's delivering what we need to deliver, they will be encouraged to put in a bid for the ERDF money.

"This funding probably won't fill the whole gap but it will make a difference.

"Business means jobs and that's the main issue here."

Back in 2008, the city received £8 million in ERDF funding, some of which helped the LCB Depot in Rutland Street, Leicester, support growing businesses.

Christine Cox and Ross McMinn of marketing company Workspace 1, now based at Phoenix Square, benefited from the European money.

Christine said: "We got office space for nine months and information about setting up our business."

Ross said: "I don't know how we would have made it through without the support of the scheme."

Hema Patel's one-woman marketing business Only Red, also at Phoenix Square, was also assisted.

She said: "I had help I never would have had access to otherwise and services that might have cost me £100 an hour."

Leicester City Council plans to use the first £6.4 million of the new cash-pot to help new enterprises start up. The remaining £1.9 million will be used to improve the city's streets and public spaces.

Leicester's grant, based on the city's population, was the largest of any received in the East Midlands.

Anyone bidding for funds needs to put forward proposals that would use a third of their own capital to match the ERDF money. To find out more, call 0116 252 8654 or visit:

www.leicester.gov.co.uk/regeneration/