SFLG receives £60m boost

The government's Small Firms Loan Guarantee (SFLG) had been boosted by £60 million, in a bid to increase finance access for small business owners.

Under the SFLG small businesses that are unable to get conventional finance, due to a lack of assets, can have up to 75 per cent of their loan guaranteed by the government.

At present the SFLG is only applicable on loans up to £250,000 and to businesses with an annual turnover up to £5.6 million.

"Changes to the small firms' loan guarantee scheme will make it easier for firms to get credit and for banks to have a safety net when lending in that vital but volatile start-up time," the British Bankers' Association told Reuters.

A number of UK lenders currently participate in the scheme, including Lloyds TSB, Barclays and the Co-operative Bank.

Other small business finance announced in last week's Budget includes a £12.5 million fund to encourage female entrepreneurs to launch their own businesses.