Credit easing: National Loan Guarantee Scheme and Business Finance Partnership

In his autumn statement to Parliament on 29 November 2011, the Chancellor announced that credit easing would be introduced through two schemes – the National Loan Guarantee Scheme (NLGS) for small businesses and the Business Finance Partnership for SMEs and midsized businesses. The NLGS was formally launched on 20 March 2012, the day before the 2011 Budget.

This note looks at the short history of credit easing in the UK and recent evidence from the US.