Banks are backing small businesses

UK banks are helping more small businesses new government figures reveal today. The British Bankers' Association said information released by Lord Mandelson today, five weeks after the introduction of the Enterprise Finance Guarantee scheme, show that £40 million pounds of business loans have been offered by banks under the EFG, proving that banks are keen to lend to viable small businesses.

BBA Director Paul Ross said: "Today's figures show that UK banks are willing and able to provide credit to small businesses . The Enterprise Finance Guarantee scheme is only in its infancy but is already helping banks provide small business finance to viable businesses which might otherwise struggle to get credit . Banks are working closely with their customers to help them in difficult economic conditions and with the government to find new and innovative ways to support the UK economy and to provide lending to firms."

Mr Ross said banks were also working hard to ensure their staff were aware of the scheme and able to provide the support required by small businesses in the current climate.