Banks announced £3 billion small business boost

Date: 5th February 2009

The Royal Bank of Scotland (RBS UK) and Natwest are to free-up an additional £3 billion in small business loans this year.

Funding will be made available to small firms - such as partnerships and sole traders - in the form of 12 £250 million local funds across Britain and Northern Ireland through regional development agencies.

The scheme is set to increase cashflow to the UK's small business sector, which has recently struggled on tightened lending criteria.

Chief executive of RBS UK, Alan Dickinson, said: "The funds have been designed to give business customers the further confidence to focus on running their business rather than having to worry about their finances."

He added that the bank would also be working closely with regional development agencies to help small firms through the recession.

The Bank of England is later today (February 5th) widely-expected to reduce its lending rate from 1.5 per cent to one per cent.