The first look at the impact the Government’s Funding For Lending Scheme has had on UK small businesses shows over a billion pounds of funding has been issued despite the initial scepticism it was met with when it launched two months ago.
The £80billion scheme which aims to kick-start Britain’s economy was criticised by experts who warned the new cash may not reach those who need it the most.
However, confirmation that the money which has been lent to date has been split regionally and managed locally is early evidence showing community businesses are benefitting fully, having saved SMEs over £25million already – an average of £4,500 per business.
The lenders, RBS and NatWest, say they saw a 15% increase in applications for their discounted loans in the first month,
Chris Sullivan, CEO, RBS Corporate Banking said: “This is a real opportunity to stimulate growth across the UK – the strongest way we can do this is to offer our best ever terms on SME loans. We hope this gives more businesses the confidence they need to invest."
It is expected that £100m in total will be saved on the cost of borrowing over the life of the scheme.