§ Mr. Jim CunninghamTo ask the Chancellor of the Exchequer what plans he has to encourage the availability of business start-up loans for people from social classes D and E. [63907]
§ Ms HewittThe DTI's Small Firm's Loan Guarantee Scheme already offers support to people with viable business proposals seeking finance but who lack the assets to offer as security against a conventional loan. By providing a guarantee against default the Scheme encourages lenders to lend where finance would not otherwise be available.
As part of the Government's Social Exclusion Agenda, I have established a Policy Action Team which will report by July 1999 on methods of encouraging businesses in poor neighbourhoods. The Team's remit includes examining ways of improving access to capital for small firms, especially start-ups in deprived areas.