Skip to main content

Business: Government Assistance

Volume 508: debated on Monday 29 March 2010

To ask the Minister of State, Department for Business, Innovation and Skills (1) how many businesses are in receipt of assistance under the Working Capital Scheme; (317255)

(2) how many businesses have applied for funding under the Working Capital Scheme since 1 November 2008.

The Working Capital Scheme (WCS) has provided guarantees to two banks on portfolios of short-term loans with good credit risk in order to release regulatory capital to enable those banks to increase lending to businesses. The two banks with WCS guarantees, Lloyds Banking Group and Royal Bank of Scotland, have made lending commitments of £39 billion.

Public Borrowing Review 2009 announced that as the broader asset protection scheme now provides banks with considerably greater capital release, so new portfolios will not be guaranteed under the WCS although existing portfolio guarantees will remain until March 2011. Because the WCS was only available to banks, companies were not eligible to apply.