Small Businesses: Finance

House of Lords written question – answered on 19th July 2010.

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Photo of Lord Taylor of Warwick Lord Taylor of Warwick Non-affiliated

To ask Her Majesty's Government what steps they will take to improve the support small businesses receive from banks.

Photo of Baroness Wilcox Baroness Wilcox The Parliamentary Under-Secretary of State for Business, Innovation and Skills

Our coalition agreement makes clear that ensuring the flow of credit to viable SMEs is essential for supporting growth and should be a core priority for a new Government, and we will work together to develop effective proposals to do so.

As such, the Budget announced that a Green Paper will be published before the Summer Recess to consider the broad range of finance options for businesses.

In the mean time, we continue to encourage the banks to lend to credit-worthy businesses. The Budget also announced that the enterprise finance guarantee (EFG) facility for this year is being increased by £200 million to £700 million for small businesses until 31 March 2011. In addition, the Government have in place agreed lending commitments to small and medium enterprise (SME) businesses with RBS and Lloyds Banking Group.

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