EU funds need to reach business start-ups, says FSB

Date: 3rd November 2008

More needs to be done to ensure the proposed £4 billion EU rescue package for small businesses reaches the sector, it has been claimed.

The Federation of Small Businesses (FSB) has called on banks to take advantage of the money offered by the European Investment Bank (EIB).

While welcoming the announcement of the £4 billion cash-injection, the FSB has expressed concerns over high-street lenders lack of enthusiasm over the scheme.

John Wright, national chairman of the FSB, said: "The government must insist more banks apply to the EIB so more small businesses can access the much needed funds.

"Over 80 per cent of businesses use the four major banks yet only one - Barclays - currently supply EIB finance."

He added that both the government and the EIB had to do more to promote the availability of this fund.

To find out more information about EIB scheme, business start-up managers should consider speaking to an accountancy firm.