Lloyds Banking Group recently announced that it will lend an additional £1 billion to small and medium sized businesses in the UK as part of its ‘SME Charter’. The bank’s goal is to assist 100,000 start-up companies throughout the UK develop and expand over the course of the year in order to stimulate the economy.
The SME Charter is part of Lloyds Banking Group’s effort to carry out the pledges it made to customers over the last year. As part of the programme, the bank plans to double the exiting £500,000 limit on credit issued by local bank managers without additional credit approval.
In a statement, Lloyds said that the new policy would help small companies in the UK “harness vital growth opportunities” and capitalise on the growing economy. A wide variety of retail banks are part of Lloyds Banking Group, including the Bank of Scotland and TSB.
Bank of Scotland Commercial Banking managing director Alasdair Gardner voiced his approval of the new policy, saying: “This new charter clearly sets out the pledges we are making to our customers.
“We are committing to grow our total lending by £1 billion in 2014, at competitive margins, and building on the growth we have achieved over the past three years.
“We will be fair and transparent in all of our dealings with our customers; and will provide broader support through our relationship managers and business specialists.”
Both Lloyds and much of the current government believe that small and medium-sized businesses (SMEs) will be a key driver of economic growth. Lloyds approach to lending could lead to a significant level of development among small businesses, as the bank is currently the UK’s second-largest SME lender.
