Mandelson unveils business support - commercial mortgages

15 January 2009

Business secretary Peter Mandelson has announced a multi-million pound package of support aimed at freeing up finance for small and medium-sized companies.

It builds on measures that were previously announced in last year's pre-Budget report.

A working capital scheme that will secure a maximum of £20 billion of short-term lending to businesses with turnovers of no more than £500 million has been unveiled.

And an enterprise finance scheme will secure up to £1.3 billion for smaller organisations.

Investment in firms that need equity will be provided through a £75 million capital for enterprise scheme.

Lord Mandelson commented: "UK companies are the lifeblood of the economy and it is crucial that the government acts now to provide real help to support them."

The move could be a positive development for businesses seeking commerical mortgages.

In related news, companies are to be given 'golden hellos' of £2,500 for taking on people who have been unemployed for six months.