WIREDGOV

The CBI commented on the Government’s National Loan Guarantee Scheme, which should help small businesses to access cheaper finance.

The scheme will provide up to £20 billion of government guarantees on unsecured borrowing by banks, enabling smaller firms to borrow at a lower rate.

John Cridland, CBI Director-General, said:

“This £20bn initiative is a clear signal from the Government that it is seeking to address aspects of access to finance for smaller businesses, including the cost of lending.

“The scheme, otherwise known as credit easing, should help bring down the price of loans to small businesses, but it will not solve the structural issues.

“For a longer-term solution, the Government must act on recommendations in the Breedon review, which set out practical ways businesses could secure more “patient” sources of funding over a longer timeframe.”