The business secretary, Lord Mandelson, has unveiled a £20bn package to support small businesses during the recession, by boosting the availability of credit from the banking sector. The package means that the government will provide £10bn of working capital to customers with a turnover of less than £500m (a measure which could cover all but the largest 350 companies in the UK), and £1.3bn of loans for companies (particularly those in sectors which are seen to be vital in rebuilding the economy) with a turnover of up to £25m (Financial Times). In return for a fee the state will insure banks against companies defaulting on loan repayments (BBC).
One cause of this package was banks’ reluctance to lend to businesses, as they were afraid that, as the economy sinks deeper into recession, more companies would find it difficult to meet debt obligations (The Guardian).
As with a recent previous programme to help smaller business, Mandelson believes that this package will help steer businesses through this economic downturn into a stronger position once this climate is over (The Telegraph). However, many feel that £20bn is not enough to get the banks lending sufficient funds to help businesses get access to much needed cash, with members of the Conserative party stating that the figure should be £50 billion instead.
Showing posts with label small businesses. Show all posts
Showing posts with label small businesses. Show all posts
Friday, 16 January 2009
Government to guarantee £20billion loans to small businesses
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Monday, 1 January 2007
Jacqui Brookes, FCS CEO awarded an OBE in the New Year Honours List
Jacqui Brookes, the CEO of the Federation of Communication Services (FCS), has been awarded an OBE in the Queens New Year Honours. The award recognises her contribution to the industry by proactively representing small and medium enterprises with the Government and the telecoms regulator OFCOM
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