§ Mr. GreenTo ask the Secretary of State for the Environment, Transport and the Regions how much money had been paid to businesses under the extensions of the small firms loan guarantee scheme announced by the Minister for the Environment on 26 March by 26 April. [159940]
§ Ms HewittI have been asked to reply.
No loans had been notified to the Small Business Service (SBS) by 26 April, for businesses covered by the extension of the Small Firms Loan Guarantee Scheme (SFLGS). All loan applications are made direct to one of the approved lenders who will undertake their commercial appraisal and consideration of commercial finance before the SFLGS becomes an option.
Since the details of the Scheme changes were announced on 6 April the SBS and the lenders have undertaken much work. The legal framework of the changes has had to be agreed with the lenders and the lenders have had to put in place, at branch level, the necessary administrative changes. Many inquiries have been received about the changes but it is likely to be a while before this interest translates into new loans.