Government may lend to businesses
19/12/08
It has been reported that the government is going to lend money to businesses that have been finding it difficult through the recent recession.
Businesses that take out a bank loan will be able to ask the government and request a similar amount; acting like a bank itself.
The Daily Telegraph said that the government will provide over half the funds that businesses need and the rest will be made up by the banks which will be no more than 25%.
Harriet Harman who is the Head of the Department for Business and Enterprise is said to have unveiled the idea when she stood in for Gordon Brown at the prime minister’s questions on Wednesday.
"It's true to say that, while lending figures are starting to show increasing lending to small businesses, there are still businesses having problems," she said.
The new scheme will be established in January.
