EIA respond to Budget

The Government must step in to alleviate excessive bank charges on loans for small and medium sized businesses says the Engineering Industries Association.

The EIA, which represents the interests of SMEs in engineering, welcomes the statement of the Chancellor that he is putting SMEs at the centre of his economic growth package but questions how the banks will respond.

EIA President Sir Ronald Halstead said:

“The EIA welcomes the requirement for RBS and Lloyds to lend an extra £94 billion pounds to SMEs.  However the banks are making it difficult and more expensive to borrow.  They are increasing charges, reducing overdraft limits and asking for personal guarantees.

“How will the banks respond to the Chancellor and make borrowing less difficult and less expensive for SMEs?  This also applies to the Small Firms Loan Guarantee Scheme and the Enterprise Finance Guarantee Scheme administered by the Banks.

“SME’s want to borrow but just cannot afford to do so until new measures are brought in by the Government to alleviate this problem.”