News and features

Mon, 8 Dec 2008

Darling says small firms will get support

Small businesses could find getting credit during the crisis is not impossible, as the government talks with banks about releasing funding.

Chancellor Alistair Darling says the government has set aside funding to support small businesses through the credit crisis.

The funding, from the European Investment Bank (EIB), will go some way to filling the credit hole many businesses are finding themselves up against.

Mr Darling said he had been "concerned" to hear even firms with good order books and credit profiles were being refused funding from banks, according to the BBC.

If funding support dries up many businesses could have to close down.

"It is very important that as we enter what is going to be a difficult economic period that small businesses can get access to funds," Mr Darling said.

"If you have got a good business in front of you and if your prospects are good, the pool of money available is the same as it was in 2007."

The Telegraph reported some banks were reluctant to draw on the EIB's funds for one reason or another but bosses were meeting with the chancellor to discuss options.

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