Government launches scheme to boost small business lending

Under the National Loan Guarantee Scheme unveiled today, companies with an annual turnover of up to £50million will be able to apply for finance at a discounted rate of 1% lower than the rate they would otherwise receive from the bank. Banks that have signed up so far include Barclays, Santander, Lloyds and RBS. Around £5billion in guarantees is expected to be made available in the first tranche. "The government promised to help small businesses get access to lower interest rates. Today, we deliver on that promise with a nationwide scheme," said Osborne. "It's only because we've earned credibility with our deficit reduction plan that we have low interest rates, and it's only because of this scheme that we can pass the benefits of those low rates onto businesses."