A CHARITY which helps small business start-ups has pulled out of Oxfordshire after its funding was cut.

The Fredericks Foundation was hailed by Chief Secretary to the Treasury Danny Alexander as “one of the most successful of its type” when he visited its Chalgrove office seven weeks ago.

There are fears fledgling businesses and small start-up firms will lose out after Oxfordshire County Council told it to look elsewhere for extra cash.

The group’s director Audrey Slade said a shortfall of £23,000 from the council left it unable to continue its work.

She said: “Unfortunately, funding, which was expected to last three years, was curtailed after a year-and-a-half and we can’t continue to operate in the county without support. Some people will be able to start without finance, but some won’t.

If they can’t persuade anyone else to lend to them they may remain unemployed, particularly if they have barriers to traditional employment, such as care responsibilities, health problems or have been unemployed for a long time.”

Since opening an Oxfordshire branch in June 2011, Fredericks has made 29 loans, totalling £165,000. Mr Alexander highlighted its work as a good example of community-based alternative lending.

The charity applied for funding of £33,000 to take it through the next 12 months, but was only offered £10,000.

Monica Franke, 40, borrowed £6,000 from Fredericks after being rejected by banks, to set up her Bletchingdon osteopathy practice Clinic on the Green.

She said: “If you think how much success Fredericks has had and how much that has contributed to society and the county’s overall finances, why would you take that away?”

Circus performer Oliver Ward, 21, from Westcote Barton, borrowed £2,500 to start Oxford Circus Academy which teaches acrobatics, trapeze and tumbling.

He said: “It’s a real shame for small businesses. Fredericks really helped me make the next step and without them I wouldn’t be here.”

The county council said the foundation failed to meet an agreement to supply two loans a month.

It said in a written reply: “The time of never-ending grant funding from local authorities is over in the UK. We advise organisations to work together to become sustainable in the long-run.”

Ms Slade said district councils were supportive and the charity hoped to restart in the future.