Santander pledges £100m in small business loans

Date: 6th March 2009

Commercial banking giant Santander has pledged to provide more than £100 million in new lending to small firms.

Specifically, the group's subsidiary Alliance and Leicester will join the government's Enterprise Finance Guarantee Scheme from today (March 6th) and also apply to participate in the European Investment Bank's 15 billion euros (£13.36 billion) small business fund.

Managing director of UK corporate and commercial banking at Santander, Steve Pateman, said: "Many businesses are not only encountering challenges in their own business, but are also finding their banking facilities being re-priced or withdrawn with little consideration to the wider or historic relationship."

He added that the group was "committed" to forging relationships within the small business community, which was demonstrated by Santander's widened regional network.

Small business owners who wish to find out more about how the scheme can help them should speak with their local accountant.

Figures published by the British Bankers' Association this week showed that small business lending rose by £235 million in January.