The government has unveiled a new scheme to help small and medium sized businesses weather the economic downturn.
Business secretary Lord Mandelson unveiled the package which is designed to address the cash flow, credit and investment needs of small and medium businesses.
The measures include a £10 billion Working Capital Scheme securing up to £20 billion short term bank lending to companies with a turnover of up to £500 million. An Enterprise Finance Guarantee Scheme, with £1.3 billion of additional bank loans to small firms with a turnover of up to £25 million. Also, a £75 million Capital for Enterprise Fund to invest in small businesses which need equity.
Business secretary Lord Mandelson said: “UK companies are the lifeblood of the economy and it is crucial that government acts now to provide real help to support them through the downturn and see them emerge stronger on the other side.
“We know some companies are struggling to secure the finance they need, not because of any failure in their business but due to the tougher credit conditions. That is why we have designed a package of measures addressing different forms of credit and providing real help for businesses.”