Industry bank won’t directly aid SME’s frustrated by securities, Cable says
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The government's new industry bank won't offer any direct aid to SME manufacturers whose borrowing plans are being frustrated by securities, Vince Cable has told WM.
"It won't help directly with that problem," the business secretary said when asked how the proposed institution could aid firms being pressed for personal guarantees on existing funding applications.
Cable added: "What we have tried to do with companies who have been turned down unreasonably is introduce an effective ombudsman system. Companies can challenge the decision. In the majority of cases that have been referred they've come back with the money."
The comments came as Cable appeared before an Associate Parliamentary Manufacturing Group (APMG) committee meeting to discuss his plans for the industry bank.
The bank is proposed as part of the government's industrial strategy and could inject up to £10bn of extra lending to UK manufacturing.
Cable told the APMG: "The bank will have three objectives...lending to... medium sized companies alongside the Business Growth Fund. Secondly providing wholesale finance to new providers- those new challenger banks..thirdly we want to sort out the very confusing landscape of government financial support."
