Govt loans boosting business

Date: 22nd December 2009

Businesses across the country have received a lifeline in the form of government-backed loans worth a total of £500 million.

The funding has been made available to the firms through the Enterprise Finance Guarantee scheme and has been divided among more than 5,000 organisations.

Companies are using the investment to boost their cashflow as well as to update their equipment, maintain job security for employees and hire new staff.

Recent research from the government found that 94 per cent of business owners felt that their prospects had improved after taking out such a loan.

The study also revealed that 84 per cent of enterprises believed their organisations' survival was linked to the funding.

Small business minister Lord Davies said: "The Enterprise Finance Guarantee has been welcomed by business and, following its recent extension, it will continue to play a vital role in encouraging enterprise and investment and driving productivity and growth throughout the UK economy."