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Business lending success revealed by Lloyds

Date Added: 14/08/2013  

Lloyds has announced that it has hit a business lending target it previously set, after loaning a total of £1 billion to companies in the manufacturing sector in the UK.

The bank announced that it has beaten this goal more than three months ahead of schedule, with the bank’s Manufacturing Commitment having been unveiled last September.

Chief executive Antonio Horta-Osario confirmed in a statement that the bank passed the £1 billion mark at the end of June, meaning many small to medium-sized enterprises (SMEs) in the manufacturing sector have been able to get loans from the bank in the last year.

David Oldfield, managing director of SME and mid-market banking for Lloyds, said: "We launched the Manufacturing Commitment in recognition of the fundamental role the manufacturing sector plays in the UK economy. This commitment has helped to create new jobs and support businesses' expansion plans."

Among the companies to have got a business lending boost from the bank as a result of the programme are GA Engineering in Scotland - which received £1.8 million from the bank to cover the cost of its expansion - and Yorkshire-based energy firm Fulcrum, which was lent £4 million to pursue larger contracts.

The bank’s Manufacturing Commitment was designed to work in conjunction with the Funding for Lending Scheme, which was set up by the government and the Bank of England last summer. This programme aimed to improve the flow of credit to SMEs by offering banks incentives to increase the amount of money they were lending to businesses.

Earlier in the month, the government insisted that it is not in any rush to sell the shares it has owned in Lloyds since it bailed the bank out in the middle of the recession.

Deputy prime minister Nick Clegg stated that the coalition is not in a hurry to sell the 39 per cent of the bank it currently owns and will wait for the right time to make the sale of the shares.

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Posted by Michael Beam

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