Government financial help aimed at small companies
Last month Business Secretary Lord Mandelson unveiled a package of measures designed to address the cash flow, credit and investment needs of small and medium businesses.
The support package, which builds upon the commitments outlined in November's Pre-Budget Report, includes loan guarantees and a new Enterprise Fund aimed at helping companies struggling to access finance for working capital and investment.
The package includes:
- A £10bn Working Capital Scheme, securing up to £20bn of short term bank lending to companies with a turnover of up to £500m. Government is expected to be able to approve guarantees from the end of this month.
- An Enterprise Finance Guarantee Scheme, securing up to £1.3bn of additional bank loans to small firms with a turnover of up to £25m. Available from high street banks now.
- A £75m Capital for Enterprise Fund (£50m from Government augmented by £25m from the banks) to invest in small businesses which need equity. Availability to be confirmed.
If you want to find out more the Government has launched a new "one stop shop" easy-to-use web portal on the Business Link website, to direct you to the most appropriate form of support and help you ascertain your eligibility. Go to http://www.businesslink.gov.uk/bdotg/action/detail?type=CAMPAIGN&itemId=1081831680&atom_id=0.PR251741&site=210 to find out more.
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