Government scheme backs cheaper finance for SMEs

Under the National Loan Guarantee Scheme unveiled today (20 March), business with turnovers of up to £50 million can apply for finance at a discounted rate of 1% lower than the rate they would otherwise receive from the bank. Banks that have signed up so far are Barclays, Santander, Lloyds and RBS. The discount is made possible by the government backing £20 billion of funds to enable banks to borrow more cheaply. The scheme was originally announced in November's autumn statement; today sees the first tranche of £5bn being made available. Chancellor George Osborne said: "The government promised to help small businesses get access to lower interest rates. Today, we deliver on that promise with a nationwide scheme." Interested businesses should contact their bank for more information.