Business bosses unimpressed by new government help package

Responding to a support package consisting of loan guarantees and a new enterprise fund aimed at helping companies struggling to access finance for working capital and investment, the CBI said the level of support being offered was outstripped by the scale of the problem facing businesses. The Government measures include: * A £10bn working capital scheme, securing up to £20bn of short term bank lending to companies with a turnover of up to £500m * An enterprise finance guarantee scheme, securing up to £1.3bn of additional bank loans to small firms with a turnover of up to £25m * A £75m capital for enterprise fund (£50m from Government augmented by £25m from the banks) to invest in small businesses which need equity Responding to the package, the CBI's director-general, Richard Lambert (pictured) said: "The scale of the problem goes well beyond what the government has announced today. "The impact of a damaged banking system on ordinary businesses has reached a critical stage and although today's package will undoubtedly help many hard pressed firms it is silent when it comes to larger companies. "Those businesses at the heart of so many vital supply chains face the daunting prospect of re-financing over £100 billion of credit facilities during 2009. "The sense of living on borrowed time is palpable."