Mandelson defends loan guarantee scheme

Business secretary Lord Peter Mandelson has defended the loan guarantee scheme, saying more than £40 million has been offered to businesses.


Business secretary Lord Peter Mandelson has defended the loan guarantee scheme, saying more than £40 million has been offered to businesses.

Business secretary Lord Peter Mandelson has defended the loan guarantee scheme, saying more than £40 million has been offered to businesses.

The government representative says around 400 loans are being processed and £1 million was awarded each day in the first few weeks of the Enterprise Finance Guarantee scheme.

It has recently come under fire, with analysis from the Financial Times claiming only £12 million has been handed out to UK businesses.

However, Mandelson states the programme is already benefitting small businesses, although he admits time is needed for the money to filter through.

‘Inevitably it takes time for schemes to take effect but the amount already lent, in only a matter of weeks, is good news for business,’ he adds.

The minister also pledges that the government will do more to promote the scheme in banks at branch level, saying a new initiative has been launched.

Mandelson says the new plan will test frontline employee’s knowledge of the funding, to ensure the information is filtering down.

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