Darling Unveils Business Support
The chancellor has announced a £4bn package of loans to help businesses get through the economic crisis.Alistair Darling called on High Street banks to provide the funding from the European Investment Bank (EIB) to small and medium-sized firms.
He told a City audience that the companies were "the lifeblood of UK business" and that it was in the interest of the banks to support them.
"I want to encourage British banks and small businesses to get their share of this extra support, which we estimate to be up to £4bn," the chancellor said.
"It is important, I believe, that banks do sign up to this. There are funds available. The banks have as much interest as small businesses and the rest of us in ensuring that we help small companies get through this period.
"It is very easy - in the good times - to go around encouraging people to sign up with you as a bank, but remember, in the difficult times, small businesses need help as well and we want to make sure they get that help."
He said that the £4bn on offer from the EIB over the next four years would make a "significant difference" in boosting lending to small business.
Business secretary Lord Mandelson, who was also at the conference in London's Guildhall, stressed the need to ensure small firms had access to funding.
He also called on the banks to maintain competitive lending rates.
"We are not advocating irresponsible lending, but a clear commitment to ensure that funds are there for creditworthy firms who are seeking finance from our high street banks," he said.
"We need sustained communication between banks and small businesses so as to enhance business confidence. There is real anxiety among small businesses - and understandably so."
|
