FSB proposes £1bn small business fund

News Article - 23 May 2012
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The Federation of Small Businesses (FSB) has proposed a £1 billion fund to help the small business health of small companies.

According to the FSB's blueprint, emergency action should be taken to help the firms over the next fortnight as a "six-month stop-gap".

Key to the proposals is a £1 billion Small Business Survival Fund, which should replace the Small Firms Loan Guarantee plan and be strengthened with cash from the European Investment Bank (EIB).

According to John Wright, national chairman of the FSB, small businesses should be given as much help as major institutions.

"A lot has been made of the rescue package for big banks, but small businesses are at the heart of our economy, employing just under 60 per cent of the private sector workforce," he said.

"A rescue package for small businesses is crucial to shortening the economic downturn and saving jobs."

The government had announced a support plan for small and medium-sized enterprises earlier this week.

Among the proposals was a pledge from the government to pay any bills it owes to businesses within ten days.

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