Lending under government small biz scheme over 40% down on 2010
Authors of new report demand urgent action
A new report claims the amount of money provided by the government’s principal small business lending scheme has fallen by over 40% in just 12 months.
The report, compiled by financial services company Syscap, reveals that business officials offered £433m under the Enterprise Finance Guarantee (EFG) scheme during the year to July 2011. In contrast, a total of £742m was proferred under the aegis of the scheme during the previous 12 months. The researchers also concluded that, over the three months to June 2011, only £93.1m was made available to new and growing business – compared to more than £250m in the second quarter of 2009. Philip White, the chief executive of Syscap, suggested that the terms of the scheme should be widened to include lease-based finance, adding: “With economic performance in the past two quarters looking lacklustre and the ongoing eurozone crisis continuing to erode business confidence, an expansion of lending under the EFG scheme is urgently needed to help put the economy and job-creation firmly back on the growth track.”