The scheme will offer businesses with turnovers of £50m or less the option to borrow government guaranteed unsecured loans at a 1% discount.
Phillip Monks, CEO of Aldermore, said: “By ensuring that the credit easing initiative is economically viable for a challenger bank like Aldermore, the Government will enable us to continue supporting smaller firms, while simultaneously promoting competition within the banking sector.
He said Britain’s small businesses are the lifeblood of the economy and the source of vital growth in the future.
Since 2009 Aldermore has lent £771m to over 9,000 small and medium sized enterprises.
“While the roll out of this scheme is important, it is only part of the story. A lot morstill needs to be done to increase the volume of funding to SMEs. We will continue to work with the Treasury to find more ways to help British business succeed,” said Monks.
Aldermore offers a Q&A on the scheme on its site and David Whittaker, managing director of Mortgages for Business had this to say on the scheme this morning.
