RBS and NatWest launch £5m Community Business Loan Scheme

Date: 18th October 2011

A number of small businesses around the UK are set to benefit from a new loan scheme launched by two of the UK's biggest banks.

RBS and NatWest have unveiled a new £5 million Community Business Loan scheme in order to boost firms that would not normally qualify for mainstream bank credit.

According to the banks, it is the first time funding of this scale has been made available to such businesses.

The banks said that all loans will be granted on "favourable terms".

Business and enterprise minister Mark Prisk said the move will help to bring funds to smaller businesses, which is "vital" if the economy is to improve.

"It is vital to improve the flow of finance from banks to all sectors of the economy. The government supports any initiative that could help make this happen and I hope this fund will create new opportunities for community businesses to get access to mainstream finance," he commented.

"These enterprises play a key part in the Big Society and the links forged by initiatives like this will help them move forward and grow."

Yesterday (October 17th) saw new bank Shawbrook open with the aim of helping firms that have struggled to get funding from some of the UK's biggest banks.

Posted by Jacob Williams