Business: Government Assistance

Business, Innovation and Skills written question – answered on 24th November 2010.

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Photo of Louise Mensch Louise Mensch Conservative, Corby

To ask the Secretary of State for Business, Innovation and Skills how much his Department had spent on the (a) Enterprise Finance Guarantee, (b) Capital for Enterprise Fund and (c) Working Capital Scheme between their inception and on the latest date for which figures are available.

Photo of Mark Prisk Mark Prisk The Minister of State, Department for Business, Innovation and Skills

Both the Enterprise Finance Guarantee and Working Capital Scheme operate as loan guarantee schemes whereby Government expenditure arises from defaults. The Capital for Enterprise Fund is an equity fund scheme.

Under the Enterprise Finance Guarantee, 12,699 businesses have been offered loans with a value of £1.29 billion, of which 10,968 businesses have drawn down loans totalling £1.1 billion. The total Government expenditure to date is £6.1 million.

The Working Capital Scheme provided guarantees to banks of £2.2 billion to release regulatory capital for new lending. To date there have been no defaults to date under the Working Capital Scheme, and as such there has been no relevant expenditure.

Under the Capital for Enterprise Fund, the Government have committed £50 million of funds towards an overall fund size of £75 million. From this £38.3 million has been drawn from the Government contribution of SME investments.

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