FLA comments on the extension to the Funding for Lending Scheme

Responding to this morning’s announcement by the Bank of England of an extension to the Funding for Lending Scheme, Stephen Sklaroff, Director General of the Finance and Leasing Association, said: “The extensions to the Funding for Lending Scheme have the potential to boost the use of the scheme for business investment.

“The new incentives for SME lending, the inclusion of non-bank subsidiaries of participating banks, and allowing participants to lend to non-bank credit providers, ought in principle to help the leasing markets, which already support 750,000 UK small firms and 30% of UK business equipment investment

“While it is clear a lot of work will be needed to implement these changes effectively, the extended scheme ought to help UK small businesses.”

Note to editors:

1. In 2012 FLA members provided £76.3 billion of new finance to UK businesses and households.  £21.4 billion of finance was provided to businesses and the public sector, representing around 28% of all fixed capital investment (excluding real property and own-account software) in the UK last year.