Business in the South West will benefit from Government package

On the 14th January, Business Secretary Lord Mandelson revealed a package of measures designed to aid the cash flow, credit and investment needs of small and medium businesses. Research into the South West economy, conducted by Business Link and the South West RDA indicate that cash flow management is critical to small businesses in the region. 45% of the businesses interviewed stated that access to finance was an essential mechanism to increase competitiveness. John Savage, chief executive of Business West GWE and South West RDA board member stated that he hoped these measures would help small businesses to expand over the forthcoming year. The Government measure includes; a £10bn Working Capital Scheme which will secure up to £20bn of short term bank lending to companies with a turnover of up to £500m, an Enterprise Finance Guarantee Scheme that will secure up to £1.3bn of additional bank loans to small firms with a turnover of up to £25m and a £75m Capital for Enterprise Fund (£50m from Government augmented by £25m from the banks) to invest in small businesses which need equity. More information about the support available can be found on the following site: http://www.businesslink.gov.uk/realhelp/finance.