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Bank lending scheme targets smaller businesses

A £20bn government scheme to try to boost bank lending to small and medium-sized enterprises (SMEs) has been launched by the chancellor.

Under the National Loan Guarantee Scheme, such businesses will be able to access loans with interest rates one percentage point lower than those available outside the initiative.

Barclays, Santander, Lloyds and Royal Bank of Scotland have so far signed up.

The BBC's personal finance correspondent Simon Gompertz reports.

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