The charges on Government-backed loans to small businesses have increased by a third following the end of a deal with the European Commission.
The Telegraph reposts that the premium charged by the government for guaranteeing loans through its Enterprise Finance Guaranteed Scheme (EFG) has risen to 2 per cent of the value of the loan, due to the 11 month long discount now being expired.
The price hike could affect almost 6,000 small and medium sized enterprises that have taken loans out through the EFG, along with another 3,000 companies whose loans have been approved.
The news follows last month's report that the banks have made nearly £6m in fees by charging small businesses inflated rates to access the £1.3bn scheme.
