NEW funding from the European Investment Bank, worth £150m, will enable Lloyds TSB to offer discounted loan rates to UK small firms.

It follows two similar programmes, worth £500m, operated by Lloyds TSB and Bank of Scotland, together with the European Investment Bank, in 2009 and 2010, which helped more than 1,200 companies.

The new scheme is aimed at firms with fewer than 250 staff, and means they can benefit from lower interest rates to finance 100% of a company’s investment costs, up to a maximum of £11m per project.

It is aimed at encouraging companies to invest in their business, helping to create new jobs and drive local economic growth.

“This is part of our wider engagement to ensure small companies across Europe can continue to access investment finance during economically challenging times,” said Simon Brooks, European Investment Bank vice-president responsible for lending operations in the UK.

Lloyds TSB regional director John Robson added: “To help the UK economy to grow, we need SMEs (small and medium-sized enterprises) to invest in their future, and we are delighted to work again with the European Investment Bank to support SMEs to fulfil their growth ambitions.”