Barclays announces additional investment in small businesses
Tuesday, March 9, 2010 at 9:29AM 
A recent announcement by Barclays may improve the potential for small businesses to compete in the post-recession climate.
The bank has made an additional £88m available to smaller companies through the government’s Enterprise Finance Guarantee scheme (EFG). Under the terms of the EFG, the government guarantees a portion of the loan if the debtor is unable to repay in full.
The new loans will be available to UK-based small businesses with a turnover of less than £25m.
The announcement will be welcome news for smaller companies, many of whom have struggled to acquire financing since the economic downturn hit. In recent months, banks have been seen as less willing to lend to SMEs, who have struggled to cope with the effects of recession.
Now that the economic climate is improving, small businesses will need finance more than ever as they face tough competition for market share as consumers gain more confidence. Adequate cash flow will be essential to ensure stock levels can be controlled and growth strategies pursued.
Small businesses account for more than 40% of the country’s GDP and generate over £1tn a year in turnover.
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