Government launches a new £20bn financial support package for small businesses, which can also be accessed by third sector organisations, business secretary Peter Mandelson has promised.

A £20bn financial support package for small businesses was launched by the Government, Business secretary Peter Mandelson confirmed that the package was open to ‘all businesses, including the third sector’.

The Department for Business, Enterprise and Regulatory Reform has set aside £10bn of the overall budget as a guarantee to banks that it will repay 50 per cent of short-term loans to businesses with turnovers of up to £500m. It has also separately set aside money to guarantee 100 per cent of £1.3 bn of loans to businesses with turnovers under £25m.

Chief Executive of ACEVO (Association of Chief Executives of Voluntary Organisations) Steven Bubb, said: "I am delighted to see that our discussions with the department have paid off and that the package will apply to the third sector. The focus of ACEVO’s ongoing discussions will now focus on ensuring that the support is tailored to the third sector's needs, and that third sector organisations know how to access it."

For more information about the support package, go to Business Link, practical advice for business.