First £20bn of SME finance will be made available over the next two years
Chancellor George Osborne has set a £40bn ceiling for its credit easing scheme to help SMEs obtain much-needed finance.
The first £20bn of finance will be made available over the next two years, Osborne told the House of Commons today.
New loans and overdrafts will be available to businesses with a turnover of less than £50m.
Osborne said the government would be able to take advantage of low interest rates on UK national borrowing to offer firms a reduction of one percentage point on typical rates of finance.
He added that he stood ready to increase the size of the scheme if it proved a success.
Osborne said: “We’re using the credibility we’ve earned in the international markets to help our domestic economy.”