Thousands of small businesses will find it easier to obtain bank loans thanks to changes announced in the Pre-Budget Report.
From April, a whole raft of sectors – including retailers, caterers and motor mechanics – will be eligible for the Small Firm Loan Guarantee Scheme, whereby the Government underwrites most of the loan, thereby encouraging banks to lend.
It’s estimated the move will mean a 25 per cent increase in loans granted under the scheme. Last year the scheme provided 4,000 loans, the average being just under Ј60,000. 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.
