Business Liverpool - a group made up of Business Link for Greater Merseyside, Liverpool Chamber of Commerce and Liverpool City Council - is making the money available to new firms based within the city council's boundaries.

Women, ethnic minorities and people with disabilities are being particularly targeted.

Business Liverpool's Nicole Gleave said:

"The sum of £500 will make a difference for many, because it can help buy a computer, business cards, or hold a launch event, for example, but it will also help recipients approach banks to ask them to match our commitment."