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Funding for Lending Extension Welcomed by NECC

 

Reacting to the Government and Bank of England's confirmation that the Funding for Lending scheme is to be extended and will include more types of business finance, North East Chamber of Commerce Director of Policy, Ross Smith, said:

Ross Smith, NECC Director of PolicyReacting to the Government and Bank of England's confirmation that the Funding for Lending scheme is to be extended and will include more types of business finance, North East Chamber of Commerce Director of Policy, Ross Smith, said:

"The extension of FLS must be welcomed and will hopefully benefit more North East companies seeking access to finance in what are still challenging economic times.

"While there have been some encouraging signs that the scheme has stimulated more interest in lending and reduced the cost of borrowing for some firms, evidence demonstrates that overall lending to SMEs has not increased to date. We hope now banks will take advantage of these opportunities to ensure that happens.

"It is good to see the widening of the types of business finance covered by the scheme and improving the incentive to lend to SMEs. While the final decision on finance risk will rest with the lenders, this extension will hopefully help get credit flowing to businesses and stimulate increased economic growth, without which nothing else is possible."