The government have revealed that many small businesses will be given a significant loan in order to get them started during the economic crisis.

The plan which is set to be unveiled by Secretary Lord Mandelson states that the loan will target ‘‘genuine business needs.’’

Experts within the industry say that the help will be significantly for companies with a turnover of up to several hundred million pounds a year.

"Businesses are critically in need of cash-flow. Any move to get banks lending again will be seen as good news at this bleak time," said the BCC's director-general David Frost.

"A government promise to guarantee individual loans to businesses is not only sensible, it's crucial." He added.