Bank lending to revert to 2007 levels
Oct 15 2008
Lending from three banks to small businesses is set to increase to the levels seen in 2007 after a government bailout.
The government has recently injected £20 billion into the Royal Bank of Scotland, in addition to £17 billion which will be split between HBOS and Lloyds TSB.
Small businesses could be set to benefit from this deal, as the authority states lending to this type of firm should be increased.
The government says loans could be maintained at 2007 levels and also be competitively priced.
It later clarified this would mean similar levels of availability, rather than a similarity in deals for the firms.
After announcing the bailout, Gordon Brown said: 'For savers, for small businesses and for homeowners, we must, in an uncertain and unstable world, be the rock of stability on which the British people can depend.'
He also described the deal as 'unprecedented but essential'.
The European Investment Bank has recently launched a 30 billion euro (£23.4 billion) fund to help small firms which are currently not able to secure bank finance, Is4Profit.com reports.