First £20bn of SME finance will be made available over the next two years

Chancellor George Osborne has set a £40bn ceiling for its credit easing scheme to help SMEs obtain much-needed finance.

The first £20bn of finance will be made available over the next two years, Osborne told the House of Commons today.

New loans and overdrafts will be available to businesses with a turnover of less than £50m.

Osborne said the government would be able to take advantage of low interest rates on UK national borrowing to offer firms a reduction of one percentage point on typical rates of finance.

He added that he stood ready to increase the size of the scheme if it proved a success.

Osborne said: “We’re using the credibility we’ve earned in the international markets to help our domestic economy.”

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