FSB calls for £1bn survival fund

The Federation of Small Businesses (FSB) has proposed a new £1 billion fund be introduced to tide companies over during the next six months.

According to the organisation, action should be taken in the coming two weeks to help ‘millions of small firms’ to survive the credit crunch.

The FSB has called for the £1 billion Small Business Survival Fund to be accessible by all companies and which, alongside money from the European Investment Bank, would give ‘vital funds’ to these small companies.

John Wright, national chairman of the organisation, says: ‘A rescue package for small businesses is crucial to shortening the economic downturn and saving jobs.’

He adds much has been made of the package for banks, but as these small firms employ 60 per cent of the private sector workforce they too should be helped.

Another proposal from the FSB is for big businesses who fail to pay smaller ones to be named, shamed and fined.

The organisation praised moves by the government yesterday to aid small businesses with training and financial advice, saying the proposals are “along the right lines”.

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