The UK aims to build on its already strong track record with the EIB and European Investment Fund after it lent almost £5bn in the UK last year and supported 25,000 SMEs. 

 

George Osborne said the UK was determined to make the most of the European Fund for Strategic Investment (EFSI), which would see EU funds being spent in a way which would promote growth and create jobs in the UK.

 

“A key part of the government’s long term plan is to ensure that infrastructure projects and SMEs across the UK have access to the necessary finance,” said Osborne. 

 

“Today’s announcement, which will see us join up with the European Investment Bank, brings us one step closer to making this happen.”

 

Vice-President of the European Commission, Jyrki Katainen, added he was delighted the UK had announced £6bn of co-financing for EFSI projects. 

 

“This is the biggest announcement yet and will have a big impact on SMEs and infrastructure in the UK.  The Investment Plan for Europe is moving into high gear,” said Katainen. 

 

Osborne also announced that the British Business Bank was forging closer links with the EIF to ensure it was well placed to work together to finance UK SMEs.

 

“This will enable us to strengthen our relationship with the EIF, bringing opportunities for closer collaboration in supporting the growth of smaller businesses and the UK economy as a whole,” added Keith Morgan, CEO of British Business Bank. 

 

Ashley Ilsen of Regentsmead added: “As growth is still at a historically low level, any kind of stimulus package should be beneficial to the wider economy, but it’s also great to see a particular focus on SMEs who have been through some really difficult times and seen a sustained period of serious dearth in liquidity. 

 

“We have certainly been doing our best to plug this gap and this has been central to our GetBritainBuilding campaign.”

 

However, Bob Sturges, Head of Communications at Omni Capital, questioned why George Osborne felt it was necessary to enlist the help of “opaque” and “little-understood” supra-national EU agencies.

 

“Why instead is he not doing more to encourage UK banks to devote more of their considerable cash pile to help SMEs?” questioned Bob.

 

“Or, for that matter, why does he not provide the sort of incentives for homegrown alternative lenders to get more involved as he did for the big banks and the mortgage sector via the Funding for Lending Scheme?”

 

Bob also questioned whether the pro-EU Conservative Party leadership had already launched a “Let’s Stay-In” campaign by trying to convince the public that EU membership was indispensable.

 

“Let’s not forget that the £6bn allegedly on offer is from 'public funds'. 

 

“That is, to you and I, taxpayer's money. 

 

“Did anybody ask us?” added Bob. 

 

Just how easy it would be for SMEs to access the proposed funds was also questioned by Bob who said he had seen these announcements before. 

 

“Eurocrats love red tape, and I fear our dynamic SMEs will find too torturous the process of getting their hands on the funding they need,” postulated Bob. 

 

“I hope I'm wrong."

 

Keith Aldridge, Managing Director of Amicus Group, added that anything which supported national growth by lenders in the short term sector has to be encouraging but was also concerned with access.

 

“Today's news on the potential rate rise later in the year could well be a catalyst for SMEs to apply for the funding,” said Keith. 

 

“That said whilst our development and commercial activity is the strongest it has ever been intermediaries still struggle to get their SMEs clients to capitalise on non-traditional funding opportunities so again such as NACFB members have an opportunity to support their clients’ growth plans.”

 

Russell Gould, COO of business e-lenders, Everline and ezbob, said: “The government’s recent commitment to working more closely with the European Investment Fund to promote growth and create jobs in the UK should be welcome news to all small business leaders."

 

"Support like this is crucial to ensuring lenders like us are able to continue to help the under-served small businesses which account for 99.3% of all private sector business in the UK."