The government has launched a new initiative aimed at encouraging banks and other finance providers to lend to small and medium-sized businesses (SMEs) again.
A new paper, titled Financing a Private Sector Recovery, was launched by Business Secretary Vince Cable and Chancellor George Osborne, which sets out the different finance options available to SMEs and explains how the government itself could intervene.
It also provides details on how venture capital could be encouraged and the way in which equity could be used to raise cash.
Explaining the importance of the initiative, Mr Cable said: "Ive heard the problems businesses are facing in getting bank loans up and down the country. They need innovative ways to access finance from other sources to grow our firms and economy."
"Thats why this green paper is so important as we look to help viable firms get the money they need."
Improving access to finance for small UK firms was highlighted by businesses in the run up to the general election as an important factor for a full economic recovery.




