APHC has welcomed the recent announcement by the Treasury and Bank of England of its new funding for lending scheme (FLS). The scheme, designed to boost lending to the real economy, offers banks and building societies an opportunity to borrow more under the FLS at a lower cost. In order to take out these loans banks and building societies must sign up to the ‘Banks Discount Window Facility’ from June 2012 to the end of December 2013.
Those banks and building societies taking part can borrow a proportion of FLS money depending on how much they already loan to customers – the more they loan to customers the more the funding costs will fall.
John Thompson, APHC Chief Executive: “This is a welcome move from the Treasury and the Bank of England. Many small businesses are struggling in the current economic climate with many unable to grow and diversify because the loans needed are not available. I hope this new scheme will indeed increase the availability of loans to small businesses and give a well needed boost to the economy.
For more details on the scheme visit the Bank of England website: http://www.bankofengland.co.uk/markets/Pages/FLS/default.aspx