New plans provide SME boost

New measures introduced by the government should provide small- and medium-sized businesses with help to survive the economic recovery.

One of the key aspects of the plan is the Enterprise Finance Guarantee (EFG) scheme, which will see the government guarantee 75 per cent of an SME’s bank loan, in order to encourage banks to lend.

The government announced that EFG will make a further £2bn available for small businesses.

It also plans to encourage more people to start up businesses in their home and make it easier for SMEs to gain access to government contracts.

The government now also requires its contractors to pay their suppliers within 30 days, or risk losing their contract altogether.

At the launch of the plans, enterprise minister Mark Prisk remarked that he knows how important SMEs are to the growth of this country.

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