Business Secretary Lord Mandelson has unveiled a package of measures designed to address the cash flow, credit and investment needs of small and medium businesses.
In the South West, figures from Business Link and survey evidence from the South West RDA show that cash flow management is top of the agenda for small businesses. Nearly half of businesses (45 per cent) state that access to finance is an important consideration for competitiveness.
John Savage, chief executive of Business West GWE and South West RDA board member, said: “While many businesses are feeling the pinch, there are a good number which would like to see their businesses expand over the next 12 months. It is crucial that these companies are given the means to fulfil their ambitions in preparation for economic recovery.
“We all know too well the problems relating to accessing finance in recent months. The measures announced today will allow sound, creditworthy companies the opportunity to access the upfront funds they need to enable them to grow their business or enhance the services they offer to customers.”
The Government measures include:
* A £10bn Working Capital Scheme, securing up to £20bn of short term bank lending to companies with a turnover of up to £500m
* An Enterprise Finance Guarantee Scheme, securing up to £1.3bn of additional bank loans to small firms with a turnover of up to £25m
* A £75m Capital for Enterprise Fund (£50m from Government augmented by £25m from the banks) to invest in small businesses which need equity
More information on the support available and an interactive tool which businesses can use to find out if they are eligible for one of the Government guaranteed lending schemes can be found by visiting www.businesslink.gov.uk/realhelp/finance. For more information on the support the Government is offering businesses to help them through the economic downturn visit www.berr.gov.uk.
