The Government could use taxpayer money to guarantee loan insurance for small businesses under a plan being considered by the state back business bank.
The plan aims to remove the block on bank lending to small businesses by using the insurance industry. Small businesses would buy insurance to cover the risk of them defaulting on their own loans with they could then offer to banks as guarantee to borrow money.
As the economy starts to grow it is more important than ever that businesses can access funding to invest in their organisations. In this region New Anglia Local Enterprise Partnership have also accessed funds; both grants and loans. So the Chamber would encourage businesses to investigate all options to access funding.
