Lloyds TSB reiterates pledge to cut rates for small businesses

Lloyds TSB pledged today to pass on, in full, any base rate cut announced this week, to all its small business customers with variable rate loans and overdrafts.

The pledge forms part of Lloyds TSB's commitment to support small businesses through the downturn. It is one of six measures set out in the bank's small business Charter, launched in December 2008.

John Maltby, managing director, Commercial, Lloyds TSB, says: "These are undeniably difficult times for small businesses and we want to do all we can to help offer them the support they need. Our pledge to pass on base rate cuts is just one of the promises we have made, to give small firms the best possible chance of steering a smooth course through these tough economic conditions.

"As well as the range of pledges in our Charter, we have also made clear our commitment to offering funding to small firms through the range of recently announced government initiatives. We are, for example, one of the most active lenders under the Enterprise Finance Guarantee."

The full list of pledges in Lloyds TSB's Charter is:

Future reductions in base rate in 2009 will be passed on in full to Lloyds TSB Commercial's customers

Lloyds TSB will not change the price or availability of overdrafts during the period of a customer's agreement (typically 12 months) as long as their accounts are maintained within agreed terms and limits

Lloyds TSB will agree to any reasonable request for short term finance and do what we can to support any viable business through temporary difficulties.

On renewal of an overdraft facility, Lloyds TSB will only change the limit or the price if the risks associated with that customer have changed materially

Small business borrowing will not be switched from base rate to LIBOR

Lloyds TSB will host a series of 120 business advice seminars across the UK to provide expert guidance and support for small firms and to strengthen local networks of business professionals.