UK banks to propose £1.5bn fund for small businesses

http://www.bbc.co.uk/news/business-11532614?utm_source=twitterfeed&utm_medium=twitter

"UK banks are to propose creating a £1.5bn ($950m) fund to invest in small businesses, following government criticism of weak lending.

The BBC understands that the fund will be a key proposal in a new report.

The "business growth fund" would invest the money - equivalent to about 0.1% of the UK economy's annual output - over a number of years.

The report comes from the business finance taskforce, which was set up in the summer by six major UK lenders."

This is great in principle but my guess is this will become just another fund or quango that ultimately doesn't really end up giving any serious money out to those that need it most. We've seen it with Loan Guarantee Schemes, EFG, the Regional Development Agencies etc. There are so many hoops to jump through, so many criteria to meet, that most people don't stand a chance. And why start at £10m?? This precludes about 90% of all UK businesses who are one-man bands or have a good turnover but under £10m.

Just another headline in my opinion that will result in little more money coming to those businesses who need it who are currently being let down by the financial system in this country.