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Small and medium-sized enterprises will be given financial assistance by Santander UK to help with expansion and economic growth.

The bank has received government money - from the Funding for Lending Scheme - and will now be able to reduce rates on many of its banking products, helping businesses to get easier access to finance.

Furthermore, the initial £1 billion of public money it has received will help Santander introduce a supply chain finance initiative to give even greater help to small businesses.

£500 million will also be put towards helping enterprises finance the purchase of up-to-date equipment through another scheme it has put together.

It comes after Business Secretary Vince Cable announced in September plans to set up a small business bank and, therefore, boost lending to small enterprises.

He highlighted, among others, car manufacturing and aerospace firms as those that should be targeted as the UK looks for economic growth.

Posted by Thomas Fletcher

Date published 21 Nov 2012 | Last updated 21 Nov 2012

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