The government  lending scheme for start-up bsuinesses and small busineses is failing to provide small companies with the help they need. Lending has dropped by nearly 60 per cent in the past 12 months, heightening concerns about the scheme and low levels of business finance in the UK.

Figures from the business department have revealed that lending under the Enterprise Finance Guarantee scheme has tumbled from £254m ($395m) in the first quarter of 2009 to £186m 12 months later. The decline has continued  It with lending falling a further 20 per cent in the next three months, to £149m.

Tags: business finance, Enterprise Finance Guarantee, government lending scheme, start-up