FSB calling for £1bn crisis fund
A SPECIAL fund must be created to support fragile ventures and protect jobs during the economic downturn, according to the Federation of Small Businesses (FSB) Yorkshire and Humber Policy Unit.
The unit is calling on the Government to establish a £1bn fund, which would be supported by the European Investment Bank, to help stem the number of business closures now standing at 40 daily nationwide.
Firms caught between rising overheads, late payments and a lack of funding would then be able to draw funds downs as loans through regional development agency Yorkshire Forward.
Tony Cherry, FSB Yorkshire and Humber Policy chairman and a Sheffield businessman, said that small businesses across the region currently faced an increasingly uncertain future along with the thousands of people they employ.
“They are finding it more difficult and expensive to access finance and the banks are doing little to help,” he said.
“As a consequence, 40 businesses are closing nationally every day and we have not yet reached the nadir of this economic downturn.”
He added: “This is a practical proposal that could be implemented now to save businesses and jobs in Yorkshire and Humber from going to the wall unnecessarily. We strongly urge the Government to adopt our proposal in the forthcoming pre-budget announcement.”
According to the FSB 99.1% of Yorkshire and Humber’s 279,000 businesses employ up to 49 people and while 0.2% employ more than 250.
