Member Article

"Give small businesses 1bn now"

The Federation of Small Businesses (FSB) is unveiling a proposal which it hopes will ensure the Government gets new funds to small firms straight away.

Following a Government announcement last week about securing £4billion from the European Investment Bank (EIB), the FSB is calling on the Government to use Regional Development Agencies (RDAs) to get the money to smaller businesses.

The FSB said small businesses were in desperate need of new funds, with one in three saying they had problems accessing credit from banks. The organisation says it is concerned that the EIB money will not be available before spring 2009.

Under the new FSB proposal, funds would be disbursed through RDAs immediately, making £1bn available for small firms straight away. This follows the FSB’s calls for a £1bn Small Business Survival Fund to help small firms through the credit crunch. FSB representatives are now meeting with the RDAs to outline practical ways this money can be made available to small firms.

Colin Stratton, FSB Regional Chairman for the North East of England said: “Small businesses need a solution now. While we welcome the announcement about EIB funds, this is not an immediate solution. “Having already called on the Government to put in place a £1billion Small Businesses Survival Fund - this is the best way of getting the money out to small businesses before the end of the year.

“Small businesses in the region are countering the slowdown with tremendous amounts of skill and competence however this is not to say that any help wouldn’t be welcomed. As an organisation we will be striving to find out exactly what help our regional members require; something which is high on the agenda at our Regional AGM which is held this week in Hartlepool.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .