RBS unveils £250m SME package

Feb 5 2009 by Peter McCusker, The Journal

SEMI-NATIONALISED bank The Royal Bank of Scotland has unveiled a £250m funding package for North East SMEs as part of a wider £3bn national package to back business through the recession.

In addition to providing traditional debt finance, the new funds will offer flexible business loans, invoice finance products and asset-backed loans to help firms manage their capital and cashflow.

Minister for the North East Nick Brown said: “This initiative will help SME’s to access the credit they need to manage and expand their business. It is an important step in helping get our region through the current challenges.”

Tony Kelly, managing director NatWest and RBS Business and Commercial Banking for the North East, said: “SMEs in the North East will welcome the Regional Funds initiative.

“Small enterprises are the driving force behind the region’s economy. The initiative shows our commitment to support and reassure North East businesses through the economic downturn. We will also be working closely with One North East.”

Margaret Fay, One North East chairman, said: “Small businesses are the lifeblood of our economy and many have been struggling to access financial support from the banks as a result of the credit crunch. We are extremely pleased to hear that NatWest and RBS have today pledged extra funding to support companies during these challenging times.

“We welcome this announcement and anticipate that the move will act as an economic stimulus, helping to boost business confidence. We very much hope that other banks will follow suit and take similar steps in the near future.”