FSB: £4bn SME rescue fund must reach sector

The Federation of Small Businesses (FSB) has expressed concerns over the European Investment Bank's (EIB) £4 billion rescue package.

While welcoming the scheme, the FSB is anxious that not enough of the money will reach the small business sector.

In particular, the organisation has pointed to the fact that Barclays is so far the only lender to express an interest in the fund.

National chairman of the FSB, John Wright, said in a statement: "We need to be assured that this money will actually filter down to small businesses."

"The government and the EIB must do much more to promote the availability of the EIB funds."

Mr Wright added that banks and the government needed to rewrite the application criteria so that small businesses which required the funds could access them as soon as possible.

Last week, the Conservative Party demanded that the government procure more public sector contracts to small businesses.