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01-14-2009 10:53 PM #1
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Guranteed loan for small businesses
A plan to guarantee up to £20bn of loans to small and medium-sized firms to help them survive the downturn has been unveiled by the government.
In return for a fee, the state will, in effect, insure banks against companies defaulting on loan repayments.
But there are concerns that £20bn will not be enough to get the banks lending sufficient funds to help businesses get access to much needed cash.
The Conservatives want ministers to go further and underwrite £50bn of loans.
Business Secretary Lord Mandelson said the proposals would target "genuine business needs".
full story: news.bbc.co.uk/1/hi/business/7827273.stm


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