STORY
The Government has announced an expansion of state-backed finance intended to help an additional 12,000 small and medium-sized businesses each year. The package includes a larger Growth Guarantee Scheme and £500 million to support innovative companies and scale-ups.
The scheme provides a 70 per cent Government guarantee on commercial loans of up to £2 million, reducing the risk to lenders. Ministers said the changes were intended to narrow an annual SME finance gap estimated at between £1.6 billion and £4.1 billion.
Further measures will support community lenders, exporters and businesses seeking finance for innovation. The announcement comes ahead of the Chancellor’s Mansion House speech and forms part of the Government’s growth strategy.