Small businesses to benefit from more-affordable credit

Date: 18th December 2009

Small businesses keen to expand are set to benefit from £150 million worth of affordable credit under a new scheme backed by the European Investment Bank.

Under the new initiative, Barclays Corporate has doubled the maximum size of the loans it makes available to small enterprises to £22 million, while restrictions on the type of businesses eligible for the credit have also been relaxed.

Since the money comes from the European Investment Bank, which in turn is backed by the European Union, the loans will come with interest rates 2.5 per cent lower than the standard rate normally offered to businesses by the corporate arm of the bank.

Announcing the launch of the scheme, Dan Roberts from Barclays Corporate explained: "We are well aware of the responsibility of banks in the current environment, and have developed a wide range of initiatives, both in partnership with government and on our own, which assist businesses in challenging times.

"Fundamentally, we know that we cannot be successful without successful customers."