Despatches news - Money News

Help for East SMEs -

NatWest and RBS have announced that they are making an additional £250 million funding available to small and medium-sized enterprises in the East of England. In addition to providing traditional debt finance, the new funds offer businesses the opportunity to access other avenues available to help them manage their capital and cashflow through the current recession. More information is available on the NatWest and RBS websites.

EC launches start-up fund.

The European Commission (EC) has launched a €100 million 'Progress Microfinance Facility' fund to help provide businesses with loans of up to €25,000. The fund will help small firms employing fewer than ten people and is also available to those who want to set up in business after losing their jobs. The budget could increase to £500 million through funding from other financial institutions including the European Investment Bank. The fund is expected to be up and running in 2010.

Green loan fund.

The Carbon Trust has extended the scope of its interest-free loan fund, which it claims will enable more small firms to apply for money to help them reduce their carbon footprint. The minimum loan amount has been lowered to £3,000, while the upper limit has been doubled to £400,000. The loans are available to small and medium-sized enterprises that have been trading for at least 12 months.

Measures to tackle credit lending.

The Department for Business, Innovation and Skills (BIS) has outlined its plans to crack down on credit lending in a Consumer White Paper. The paper, entitled 'A Better Deal for Consumers - Delivering Real Help Now and Change for the Future', sets out proposals for courts to ban rogue traders, along with plans for tackling consumer Internet scams and a consultation on reforming credit and store card regulations. It also contains plans for a review of pay day loans and doorstep credit, which can attract interest rates of 50% according to the BIS.

South east firms face huge bill.

Small businesses in the South East lose more than £1.4 billion every year because of government red tape, according to the Forum of Private Business (FPB). Its research has found that firms in the region spend that amount each year complying with legislation, and this is the highest amount for any region in the UK. The figure is even greater than the amount spent by small firms in neighboring London, which faced costs of just under £1.3 billion.

Drawn up using feedback from FPB members, the figures suggest that entrepreneurs in the South East face the biggest bill in the country for carrying out the paperwork associated with running a small business. The figure includes £309 million spent on health and safety legislation, £361 million spent dealing with paperwork on employment law and £37 million on dismissals and redundancy. The time, and therefore money, associated with staff absences totals £59 million, costs associated with maternity came in at £36 million and the work related to disciplinary issues was priced at £49 million.