Government To Guarantee Finance For Small Business Exporters

Fri, 11 Feb 2011

The Government has announced it will launch a new finance guarantee scheme aimed at helping small business exporters increase sales overseas.

The new export finance scheme is based on the existing £700m domestic enterprise finance guarantee, which is open to British firms with sales of up to £25m, and is part of wider measures designed by the Government to tackle "market failures" in the provision of financial support to exporters.

Exporters will be able to approach participating banks and if appropriate will be offered a short term guaranteed loan of up to £1m. The loans will come with an interest rate premium which has yet to be set.

Lord Green, the trade and investment minister, said: "The Government will offer an expanded, better coordinated range of products to large and small businesses alike, working closely with the banks to widen access to the capital and credit insurance exporters needs to make the most of their opportunities."

Adam Marshall, director of policy, at the British Chambers of Commerce (BCC), said that the export finance guarantee scheme, which is due to launch in April, was "a real step forward" in helping small and medium-sized companies expand their operations abroad.

He added: "BCC data shows that the Export Credits Guarantee Department, our national export credit agency, is unknown by two-thirds of SMEs. That has got to change over the coming months if any of these new finance schemes are to make a real difference."
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