UK small businesses will benefit from discounted loan rates with Lloyds TSB using a new GBP 150m European Investment Bank funding initiative. This programme will further enhance support for eligible small and medium sized enterprises (SMEs) by Lloyds Banking Group following successful use of two funding programmes totalling GBP 500m by Lloyds TSB and Bank of Scotland, which were agreed with the European Investment Bank in 2009 and 2010. These programmes were used to fund investment by more than 1200 companies.
New funding has been approved from the European Investment Bank, the European Union’s long-term lending institution, that will allow British companies with fewer than 250 employees to benefit from lower interest rates and be able to finance 100% of an individual company’s investment costs, up to a maximum of GBP 11m per project. The new programme will support companies looking to invest in their business, helping to create new jobs and drive local economic growth.
“The European Investment Bank is pleased to increase funding for small businesses across the UK under an initiative that builds on past successful cooperation with Lloyds. This is part of our wider engagement to ensure small companies across Europe can continue to access investment finance during economically challenging times”, said Simon Brooks, European Investment Bank Vice President responsible for lending operations in the United Kingdom.
“Securing this further tranche of funding will enable even more of the UK’s small businesses to access European Investment Bank’s discounted loan rate funding. To help the UK economy to grow, we need SMEs to invest in their future and we are delighted to work again with the European Investment Bank to support SMEs to fulfil their growth ambitions”, said John Maltby, Group Director, Lloyds TSB Commercial.
To date, Lloyds Banking Group has helped 1250 companies to invest in and grow their businesses under the European Investment Bank scheme.
Recent examples of loans provided by Lloyds TSB Commercial that were funded through the European Investment Bank include a Midlands-based accountancy firm, which used a £200,000 European Investment Bank loan in September 2011 to expand and purchase new premises and an Essex-based aluminium processer, which used a £50,000 European Investment Bank loan in March 2011 to fund moving to larger premises.
All helped protect or generate local jobs.
Over the last three years the European Investment Bank has provided low-cost long-term loans totalling £2.3 billion to more than 7,500 small British businesses. Most small firms taking out EIB loans have employed fewer than 50 people and the average size of loan has been £400,000.
Background information:
About the European Investment Bank
- The European Investment Bank (EIB) is owned by the Member States of the European Union, and exists to provide long-term debt financing for projects that further EU economic policies. It has been active in the UK since 1973, supporting investment ranging from motorways and rail, to water supply and treatment, energy schemes, hospitals, universities, high-tech development in industry, as well as small and medium-sized businesses.
- In the last five years (2006-2010) it channelled over £17 billion into projects in the UK, including £4 billion in 2010.
- The EIB is one the largest multilateral financing institutions, lending well over EUR 70 billion in 2010, both within the EU Member States and in third countries. The Bank operates in keeping with banking practice and in collaboration with the wider banking community.
About Lloyds TSB Commercial
Lloyds Banking Group has over one million small and medium sized business and not for profit customers and has launched a three-year programme of support for SMEs.
Press contacts: Lloyds Banking Group www.lloydstsbbusiness.com