In one of the most significant developments in the governance or financing of Britain for a hundred years, local municipal banking has returned with the launch today of the groundbreaking Banking on Essex scheme.
Banking on Essex is the first major municipal banking scheme to be created since 1915 and will see Essex County Council (ECC) and Abbey Corporate Banking make available an initial £30 million of new liquidity in loans and overdrafts to viable local businesses through the creation of dedicated credit facilities.
The scheme is in direct response to the recession and is designed to support small and medium sized enterprises within Essex currently struggling to access funding through high street providers.
Loans and overdrafts of up to £100,000 will be available for eligible Essex businesses employing less than 250 people, with a turnover of less than £25m and who have been trading for at least 12 months.