13/03/2009 - Firms not being offered loan scheme
A report claims most businesses do not know that their banks offer a flagship Government lending scheme created especially to support struggling firms through the recession.
According to the British Chambers of Commerce (BCC), just one out of 250 companies across the UK questioned had been offered a loan based on the Enterprise Finance Guarantee Scheme.
A further 90% of those asked said they did not even know their bank utilised the scheme, but half had either failed to get a bank loan or had not been given enough to meet their financial needs.
David Frost, director general of the BCC, said: "A lot more needs to be done to raise awareness of these schemes. It is business that will drive the UK out of recession and it is vital that banks support companies through what is an extraordinarily difficult time."
He has called for the Government to address the growing pressures on firms by postponing the planned rise in National Insurance contributions and to end "harmful extra regulation and freezing the national minimum wage".
A Business Department spokesman said: "In the current economic climate we know many viable firms are struggling to access finance. That is why we are providing targeted support to help increase bank lending."
Copyright © Press Association 2009
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