Small businesses and the UK car industry may benefit from Government loans
13/12/08
A new scheme launched by the Bank of England will offer loans worth billions of pounds to UK banks. This scheme has been launched in the hope to encourage lending by business and homeowners where loans are guaranteed.
Many large businesses had also hoped that the Government would support them with guaranteed loans however this does not seem likely as it is thought that despite the help, many firms would still fail.
In an interview on the BBC, Mr Cameron commented on how the Governments had not acted soon enough with guaranteeing loans. He commented, “If you talk to businesses small, medium or large they're seeing overdrafts withdrawn, credit lines taken away, special interest rates being charged, trade credit being cancelled.
He continued, “It's not actually a problem of money. Many of the businesses will say to you it's not that they can't get hold of a loan with a high interest rate, they can't get hold of a loan at all.”
“It's not the price of money that's the problem, it's the quantity. Compared with last year, there are ten more businesses going bust every single day. Every day the Government delays, more people lose their jobs. What we need is the national loan guarantee scheme. We need it extended to car financing, so actually we can get people able to buy cars again.”
