The Bank of Scotland intends to make £250 million of funds available to businesses with fewer than 250 staff in the next two weeks.

The Bank of Scotland intends to make £250 million of funds available to businesses with fewer than 250 staff in the next two weeks.

The money will come from the £4 billion European Investment Bank (EIB) funding secured for small and medium-sized businesses.

A spokesperson from the Forum of Private Business says, ‘We welcome the fact this crucial funding is being made available to SMEs by the Bank of Scotland and urge other banks to follow suit.’

The bank says it is yet to work out its terms and conditions, but intends to pass on any fall in interest rates announced tomorrow.

The EIB is still in negotiation with several UK banks, but says it is expecting signatures very soon.

Both Barclays and the Royal Bank of Scotland have publicly announced that they intend to use the money. In his Pre-Budget Report the chancellor said four other banks have so far asked the EIB for the funding.