The government has recently issued a new announcement regarding small and medium businesses that will make borrowing more accessible.
RBS and Lloyds were two of the first banks to offer this new scheme, which works by the government underwriting the loan from the bank. 
Up until this announcement the government has done very little to alleviate the pressure on SMEs in the UK.
small business lending scheme
SMEs have struggled to pay bills and keep their doors open, which has meant they have attempted other methods to cut costs such as finding cheaper business electricity from Make It Cheaper, a company who help other companies to save money.
Now that these loans are available, it may seem like more doors are open to small and medium sized businesses.

Although a loan of between £250,000 and £25 million with a deferment on the capital for up to two years may seem like it could solve a lot of problems in their companies, the reality could be different. For some businesses it could be exactly what they’re looking for, especially if they’ve exhausted the other available options.

The flip side of these loans is that after two years, the capital on these potentially huge loans will need to be repaid. If business doesn’t improve in the way a company had hoped they could be worse off than before they took out the loan.
small business
There are other options before going to the big banks for help – the very ones who many believe put their companies in trouble in the first place.
Other options have become available too; since the announcements from the government and banks, other banks seem to be jumping on the bandwagon too, offering loans from £1,000 plus to any size of business.
So although things may have been hard on businesses recently, this may be a turning point, the government have reached out, and finally other banks and companies are able to make a real difference too.

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