First 拢20bn of SME finance will be made available over the next two years

Chancellor George Osborne has set a 拢40bn ceiling for its credit easing scheme to help SMEs obtain much-needed finance.

The first 拢20bn of finance will be made available over the next two years, Osborne told the House of Commons today.

New loans and overdrafts will be available to businesses with a turnover of less than 拢50m.

Osborne said the government would be able to take advantage of low interest rates on UK national borrowing to offer firms a reduction of one percentage point on typical rates of finance.

He added that he stood ready to increase the size of the scheme if it proved a success.

Osborne said: 鈥淲e鈥檙e using the credibility we鈥檝e earned in the international markets to help our domestic economy.鈥�

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