Chancellor announces £4bn EU loans for SMEs

Date: 31st October 2008

Up to £4 billion in loans will soon be available for the UK's small businesses, chancellor Alistair Darling has announced.

The money will be provided by the EU's European Investment Bank (EIB) over the next four years, the chancellor stated at a City of London Corporation event.

As a first step towards further lending for small firms, UK banks have already expressed an interest in securing around £1 billion annually from the EIB.

Mr Darling said: "Small firms are vital to the strength of our economy.

"We need to make sure that despite the global credit crunch, they have access to the loans and capital they need to help their business grow and develop."

He added that the commitment from the EIB and UK banks to get more cash into business start-ups would ensure future funding is more flexible and easier to access.

Small firms looking to complete a self-assessment tax return online have until January 31st. Those unsure of how to file are recommended to consult an accountant.