Government pledges more support for SMEs

Houses of Parliament, Wikimedia CommonsThe UK chancellor of the exchequer has said the government has struck a deal with the European Investment Bank (EIB) in a bid to gain more support for small and medium enterprises (SME).

George Osborne said thatthe EIB lent seven billion euro to UK last year, with the European Investment Fund supporting 25,000 UK SMEs.

The UK government will make £6 billion of UK guarantees available to co-finance infrastructure projects in the UK and will soon sign a memorandum of understanding with the EIB to firm up the opportunities the fund brings.

Osborne said that an important element of the plan was to make sure that SMEs and infrastructure projects have the necessary finance.

The British Business Bank has just signed a memorandum of understanding with the European Investment Fund.

The fund’s CEO, Pier Luigi Gilbert, said that the moves reflect efforts to support small and medium sized companies that drive growth and jobs in the UK as well as Europe.