The government’s £10bn business lending guarantee scheme is weeks behind schedule, the Financial Times (FT) reported today, meaning that thousands of businesses in need of bank loans may now have to wait.
The scheme was originally announced by Peter Mandelson in mid-January as part of Labour’s “real help for business” drive.
Its aim was to support up to £20bn of existing short-term bank lending to medium-sized companies, allowing more capital to be available for new corporate loans.
Easing up bank debt in this way would help businesses in need of a financial lending boost, as well as securing slightly more the position of the medium-sized companies with loans, just in case.
But apparently the government revealed to the FT that it is now unable to give a date for when the funding will be available.