Small businesses 'to get £20 billion injection'

News Article - 14 January 2009
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Small businesses in the UK are set to receive a £20 billion credit injection following an announcement from business secretary Peter Mandelson.

This may offer some much-needed support to companies who have been concerned about their productivity and business growth and wondering how they will gain the competitive edge.

The Enterprise Finance Guarantee - which was announced today (January 14th) - will ensure that companies with up to £500 million in sales will qualify for financial support.

In addition, a £1 billion export credit guarantee and a £50 million debt-for-equity fund will be included.

Lord Mandelson said: "UK companies are the lifeblood of the economy and it is crucial that government acts to provide real help."

In further news that may interest businesses concerned about the current economic climate, Accountancy Age recently noted that practices are failing to consult their workforce about plans to beat the recession.

The survey by Kato Consultancy revealed that 84 per cent of respondents had not spoken to staff about schemes to pull through the economic downturn.

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