The MG Rover task force has established a £20m cash lifeline to suppliers and dealers hit by the collapse of the Longbridge car plant.

Advantage West Midlands has set up the Advantage Transition Bridge Fund, which will make loans of up to £500,000 available to companies in the MG Rover supply chain and dealerships which face an uncertain future.

The fund is being run by a company limited by guarantee with a board of volunteers from the professional services community, including bankers, accountants and lawyers.

Loans will be available to those facing financial difficulty as a result of the MG Rover situation and having a viable recovery plan but insufficient finance from normal sources to implement it.

The loans are for up to three years, dependent on requirements.

It is estimated that about 600 Rover suppliers are owed a total of up to £200m and that between 5,000 and 12,500 jobs are at risk outside the car-maker itself.

Businesses interested in applying for the Advantage Transition Bridge Fund should call 0121 200 8195.

Further information about the fund, and who will be eligible for payments, can be found online at www. advantagebridgefund.com