FSB welcomes new £1.3 billion fund for small firms
Jan 15 2009
The onus of responsibility is now on bank managers to see that companies get credit, according to the Federation of Small Businesses (FSB), after the government announced a £1.3 billion funding package.
Yesterday a £20 billion loans guarantee scheme was unveiled to help small and medium-sized firms to survive in the downturn, with lending from banks now effectively being insured by the government.
The FSB welcomes the plans, which includes a £1.3 billion fund for small companies, but says the banks have run out of excuses and need to increase lending levels.
John Wright, national chairman of the FSB, states: 'The onus is now on bank branch managers to actively promote this money to its small business customers to ensure their survival and the revival of the economy.'
He adds the organisation will be monitoring the banks to ensure they improve lending levels and encouraging FSB members to apply for the funding.
Wright states that since October around 85 small companies have closed each day and funding is needed desperately to improve cashflow, grow businesses and retain staff.
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