Lloyds makes joint base rate pledge to small businesses

Lloyds Banking Group has announced it will pass on, in full, any Bank of England base rate cut, resulting from this month's Monetary Policy Committee (MPC) meeting, to all its small business customers with variable rate loans and overdrafts.

Small business customers of both Lloyds TSB and Bank of Scotland are covered by the Group's pledge to pass on the rate cut in full. The pledge is part of both brands' commitment to support small businesses during difficult trading conditions. The rate cut will be effective from 9 February 2009.

In December 2008, Lloyds TSB announced its six-point small business charter, including its promise to pass on, in full, any reductions in base rates to small businesses throughout 2009, whilst Bank of Scotland announced a small business support package reaffirming its commitment to maintain the link between small business overdrafts and base rate.

John Maltby, Managing Director, Commercial, Lloyds Banking Group, says: "As the Lloyds Banking Group we are committed to doing everything possible to support our small business customers. By pledging to pass on the reduction we're demonstrating our determination to help them through the troubled times ahead."

"Across the Group, we have more than 800,000 small business customers and we have made wide ranging pledges to help small firms steer a course through this particularly tough economic period. As well as our promise to pass on rate reductions, we're committed to supporting viable businesses wherever possible when they need finance to help them through short term difficulties."