Lending to small businesses increasing, claims Treasury

Date: 9th April 2009

Lending to small businesses is increasing as a result of recent government measures, the Treasury has claimed.

The suggestion comes on the back of the department's small enterprise 'lending roadshow', which is designed to offer advice on Treasury-backed lending schemes.

The department for business recently suggested that programmes such as the Enterprise Finance Guarantee were underwriting more than £1 million in fresh lending each day.

Stephen Timms, financial secretary, said: "The government understands the vital contribution London's businesses make to the region and to the UK economy.

"It's crucial that businesses understand what support is available to them form banks and the government and how they can access it."

Despite this, a large number of small businesses instead choose to call on the services of accountants to find out more information on available lending schemes.

Statistics published by the British Bankers' Association earlier this month revealed that lending to UK small businesses rose by more than £211 million in February.