Government eases lending for small firms

Jonathan Shaw MP, who is minister for the South East, responding to questions from Labour Party members, said that the Royal Bank of Scotland has just been told that they have to lend £250m to businesses within the year. This is in addition to the government's £1bn Enterprise Finance Guarantee scheme, which is being promoted by the Federation of Small Businesses, among others, and which according to their website, is beginning to be taken up. The scheme is for companies with a turnover of no more than £25m, who are finding it difficult to finance, and is for loans of from £1,000 to £1m, repayable over 3 months to 10 years. It is supported by all the major high street banks. Shaw also said that, "We are going to use public procurement much more effectively" and "We need to use public money much smarter", citing the need to link this to such things as companies taking on apprenticeships.