UK small businesses access over £700 million of loans

Small businesses based in the UK have managed to secure £726 million worth of loans made available by the European Investment Bank (EIB).

According to the British Treasury, some 2,769 small businesses have benefitted from a total of £726 million in loan funds. The improved access to credit is the result of a broad range of measures by the EIB, which plans to release around £4 billion to small business in the period of 2008 to 2011.

The National Chairman of the Federation of Small Business (FSB), John Wright, said that his organisation is pleased that nearly 3,000 small firms have benefited from the low-cost loans made available by the EIB. However, he urged non-participating banks to enter the scheme in order to increase the availability of credit for more companies.

Ian Pearson, the Economic Secretary to the Treasury, highlighted that support for small businesses is crucial for driving growth in the UK and said that he was “delighted that small businesses are benefiting from this finance”.

"I want to encourage all businesses to get in touch with their local banks to find out if they can get access to this funding,” he added.