Government loans to be offered to small businesses
20/11/08
As a result of many banks with holding companies in the UK from getting credit including loans, the Government has announced that it will help by offering loans. As much as up to £250,000 will be available for small companies to apply for from Regional Development Agencies (RDAs).
The first scheme of its type for Advantage West Midlands with four millions pounds will aid small businesses with loans in the West Midlands at “commercial rates.”
This scheme which is offered by the Business Department is one of two schemes which will let businesses in the UK borrow from public funds. The other is a scheme which allows businesses without any assets to get loans up to the value of £250,000.
The effects of the UK economy and the current credit crunch have had an effect on lending from banks. Ministers are worried about this issue however do not have any solid evidence on the scale of the problem but are in talks with bodies such as the CBI in an attempt to aid them when discussing the issue with banks.
