The Government has pledged more funding for small businesses by putting an additional £250m into the British Business Bank, less than a week after the Bank of England announced plans to focus the Funding for Lending Scheme on SMEs, with both moves providing a valuable boost for businesses to ensure they can benefit from the economic recovery.
Nick Clegg announced the plans earlier this week, saying that the money, in addition to the £1bn already put into the bank, would give firms access to more funds for hiring new staff and investment growth while allowing it to lend much higher sums. The bank itself is to be backed by Government guarantees and is currently in the process of being set up by the Department for Business, Innovation and Skills, and if all goes to plan it's anticipating to generate an annual £500m in new lending for smaller businesses.
"working hard to fuel our recovery and help us build a stronger economy." "I am determined that we do all we can to help companies that have struggled to get the investment they need – investment that means they can employ those extra people, take on that new order, and buy new equipment," he said.
The announcement comes ahead of the Autumn Statement due to be revealed tomorrow when it's hoped further business incentives will be pledged, including an expected cut to business rates.
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