Banks encouraged to lend through Enterprise Finance Guarantee scheme

Small businesses cannot be let down under the Enterprise Finance Guarantee scheme, banks have been told by the government.

Michael Fallon, the Business Minister, has already written to the Chief Executives of five high street banks to encourage them to increase their lending.

And now he and other ministers are calling on banks to boost access to finance in the coming months.

Mr Fallon explained: "It is crucial that banks play their part in making finance available to businesses and support growth in the economy. Banks have to lend responsibly but it is clear that a number of lenders need to up their game.

"The EFG scheme has been made more flexible and is now available to even more businesses. Publishing lending data should encourage these financial institutions to do more to help business thrive."

Meanwhile, Universities and Science Minister David Willetts revealed earlier this month that the government will be providing £1.1 million towards innovation in small firms.

Posted by Emily Smith

Date published 18 Dec 2012 | Last updated 18 Dec 2012