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Builders' group welcomes support for SMEs
02/11/10
Edited by Bob Witham.The government's pledge to provide more joined-up support for small and medium-sized enterprises (SMEs) has been welcomed by the Federation of Master Builders (FMB).
Measures announced yesterday (1st November) by the coalition will see the Enterprise Finance Guarantee (EFG) extended, new measures introduced to make it easier to secure public sector work and social housing tenants given the right to run a business from their property.
The EFG, which provides support to SMEs that do not have collateral or a credit history, will see banks lend £2 billion over the next four years - enough to help around 6,000 companies annually.
FMB director-general Richard Diment said this measure in particular could be helpful to builders in the UK, as many small contractors have struggled to access finance in the wake of the credit crunch despite having a "proven track record" as successful companies.
However, he added, the additional support will only make an impact if the government raises businesses' awareness of the help that is available.
A recent survey of FMB members found more than half were unaware of the EFG's existence, Mr. Diment said.
