Autumn Statement: SMEs pushed to tap bond markets for cash

Chancellor George Osborne has announced a programme of support for small and medium-sized businesses, which will include encouraging them to tap the bond markets for funding.

As part of an expected programme of credit easing, he will launch a £20bn National Loan Guarantee Scheme, which could be increased to £40bn within two years. This will underwrite low interest loans to companies with a turnover of less than £50m, and will mean the cost of borrowing for these businesses falls by an estimated one percentage point. The government is also making an initial £1bn through a Business Finance Partnership which will invest in SMEs in the UK through non-bank channels, including the bond markets.  The Autumn Statement said: "A number of reports have shown the r...