Thousands of small businesses will find it easier to obtain bank loans because of changes announced in today's Pre Budget Report.
From next April, a whole new raft of sectors - including retailers, caterers and motor mechanics - will be eligible for the Small Firms Loan Guarantee Scheme, whereby the Government provides a guarantee encouraging banks to lend to small firms.
It's estimated that the move will mean a 25 per cent increase in loans granted under the scheme - another 1,000 a year. Last year the scheme provided over 4,000 loans, the average being just under Ј60,000 per loan.
The revised scheme, which will be one of a much reduced number of business support schemes, will make an important contribution to the DTI's objective of driving up productivity.
The changes to the scheme will mean:
