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Business loans fall under Funding for Lending Scheme

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  • 28/08/2014
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Business loans fall under Funding for Lending Scheme
Net lending to small and medium-sized enterprises (SMEs) fell by £400m in the second quarter of the year, official figures have shown.

Data from the Bank of England and HM Treasury showed the Funding for Lending Scheme (FLS) had been utilised by nine institutions to support business lending between April and June.

A total of 36 groups have participated in the scheme since its launch with the nine firms accessing a sum of £3.2bn this quarter.

FLS participants repaid £800m of earlier loans with total outstanding funds standing at £45.7bn.

Across the whole market net lending by participants to small and medium-sized enterprises (SMEs) was negative in the quarter with the market shrinking by £400m.

Net lending to all businesses was down £3.9bn.

Support for mortgage loans under the Funding for Lending Scheme was removed in January 2014. The business element will remain active until January 2015.

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