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Business: West Midlands

Volume 503: debated on Wednesday 6 January 2010

To ask the Minister of State, Department for Business, Innovation and Skills what the average size was of grants made under the Enterprise Guarantee Scheme to small and medium-sized enterprises in the West Midlands in the latest period for which figures are available. (307315)

[holding answer 16 December 2009]: The Enterprise Finance Guarantee Scheme (EFGS) provides the lender with a guarantee of 75 per cent. of the loan to viable small and medium-sized enterprises (SMEs) on the margins of commercial lending. The scheme was launched in January and, by 9 December, loans worth a total of £64.41 million had been made to 643 businesses in the West Midlands. This represents an average value of £100,171. The Chancellor announced in the pre-Budget report that the scheme would be extended for a further 12 months to 31 March 2011 supporting up to £500 million of further bank loans to businesses across the country. The scheme has been welcomed by business and will play a vital role in encouraging enterprise and investment and driving productivity and growth throughout the UK economy.