Loan Guarantee Scheme

HC Deb 25 October 1988 vol 139 cc184-5W

23. Mr. Watts

To ask the Secretary of State for Employment if he will make a further statement on the progress of the loan guarantee scheme.

Mr. Cope

Since 1981 a total of 20,300 guarantees have been issued for loans to a value of £674 million under the loan guarantee scheme. In January this year simplified administrative procedures for loans up to £15,000 were introduced. As part of the Action for Cities initiative an increase in the guarantee from 70 to 85 per cent. was introduced in June 1988 for businesses based in, or moving into, inner cities task force areas. Partly as a result of these measures, the rate of applications has doubled to nearly 200 a month by comparison with the same period in 1987.