Lloyds to participate in National Loan Guarantee Scheme

Lloyds Banking Group has confirmed that it will participate in the Government's National Loan Guarantee Scheme, announced by the Chancellor, George Osborne.

Through the scheme, the Group expects to provide UK businesses with discounted funding over the next two years, subject to continuation of the scheme and its financial benefits. This funding will be offered to businesses with a turnover of up to £50 million, through loans, hire purchase and leasing. It will be available across the UK and to businesses across all sectors, on a first come first served basis, based on the Group's existing lending criteria. Firms who take up the funding will benefit from a one percentage point discount.

John Maltby, Group Director, Commercial, Lloyds Banking Group, said: "We are committed to supporting all viable small and medium sized business customers and have pledged to lend at least £12 billion this year. We have also made a series of promises on pricing, through our SME Charter and this scheme will help us go even further in offering great value for money.

"Through the scheme we will be able to offer our customers a reduction in the cost of finance and we hope this will help their cashflow at a critical time. But the scheme's real benefit will come through its potential to rekindle confidence, stimulate demand and encourage investment - all of which are vital ingredients of recovery and growth."