Bank of Scotland wins business loan support

BANK of Scotland has been awarded a third batch of funding from the European Investment Bank (EIB), which the lender claimed would help it to cut the cost of loans to small firms.

The bank will receive £150 million from the EIB, which lends European Union money back to its 27 members states.

Lloyds Banking Group, which owns Bank of Scotland, received a total of £500m from the EIB during 2009 and 2010. That money went on to reduce the loan rates to some 1,250 business, the bank said.

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Simon Brooks, EIB vice-president, said: “We are pleased to increase funding for small businesses across the UK under an initiative that builds on past co-operation with Lloyds.”

Gareth Oakley, regional director for Bank of Scotland, added: “To help the UK economy to grow, we need SMEs to invest in their future and we are delighted to work again with the EIB to support SMEs to fulfil their growth ambitions.”

Over the past three years, the EIB has provided long-term loans totalling £2.3 billion to more than 7,500 small UK businesses. The average size of loan has been £400,000.