Banks in North urged to help small business cashflow

Banks need to step in to help small businesses struggling to find the cash to operate, the North's enterprise minister said today.

A lot of firms with loans and overdrafts feel under pressure from financiers, Arlene Foster (DUP, Fermanagh and South Tyrone) told the Assembly.

She wants to discuss a scheme for tackling the problem with bankers.

“We are hoping now that because of the situation we are in with the downturn that they will become more enthusiastic about entering this small firms business loan guarantee scheme so that it is there to help those businesses that need liquidity at a time when, let’s face it, we know that a lot of small businesses are under pressure,” she said.

Meanwhile, a team of experts has been appointed to review Northern Ireland’s economic development policy.

Ms Foster wants to boost the number of high-value jobs and close the productivity gap with the rest of the UK.

The panel consists of a high-calibre team with experience in business and regional economic development. It is chaired by Professor Richard Barnett, vice-chancellor of the University of Ulster.