Bentleys have welcomed a new package of government measures designed to give small and medium-sized businesses a financial boost.

The package, announced by Business Secretary Lord Mandelson on 14 January, includes:

• a £10 billion Working Capital Scheme, securing up to £20 billion of short-term bank lending to companies with a turnover of up to £500 million. The government hopes the first £1 billion tranche of the scheme will be operational by 1 March.

• an Enterprise Finance Guarantee Scheme, securing up to £1.3 billion of additional bank loans to small firms with a turnover of up to £25 million. The guarantee, available through high street banks, will apply to loans and can also be used to convert existing overdrafts into loans to enable businesses to free up current overdraft facilities to meet working capital demands.

• a £75 million Capital for Enterprise Fund, made up of £50 million from government plus £25m from the banks, to invest in small enterprises that need equity but have exhausted traditional forms of finance to invest in their business.

Mike Turner, partner at Bentleys said: “As accountants and business advisers, we are keenly aware of the challenges currently facing our business clients and have been working closely with them to help weather the economic storms. We welcome the government’s initiative and look forward to seeing this new money making a difference to businesses.”

A new web portal, to direct companies to the most appropriate form of financial support and help them check their eligibility for a range of government aid, is available at http://www.businesslink.gov.uk/realhelp/finance

For more help and advice please call Mike Turner on 01204 388675 or visit www. bentleys-accountants.co.uk

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