In these Recession Ravaged times, the Government should institute a National Loan Guarantee Scheme.

Way back in 1995, having founded KMI with £30,000 from credit cards, unsecured loans and investments from friends and family we still found it extremely difficult to source funding to allow the continuing manufacture of our shaving oil. Although first year sales of just one oil had jumped from £300 to £58,000, the company needed to fund it's working capital, to allow the continuing manufacture and distribution of products, whilst we waited for customers like Harrods and Boots to pay us.

With both Herbie and I living in rented accommodation, and my flat still in negative equity, expansion capital was nigh on impossible to find, until we heard about the then DTI's (Department of Trade & Industry) LGS or Loan Guarantee Scheme.  This, borrowing facility, not at all advertised by banks, was very much a 'loan of last resort', one which bank managers were loathe to make, as if it went bad, although the Government guaranteed to make good 85% of the amount advanced, the bank was still on the hook, and if the loan wasn't repaid, then it was a black mark against the bank manager's record.

Long story short, we managed to secure a £100,000 loan, and combined with employing the factoring services of Alex Lawrie (whereby you assign your invoice to the bank, and they immediately pay you a percentage of the amount) were able to grow sales from £58,000 to £250,000, then £500,000 and never looked back.

In today's extremely difficult environment for small firms, the Government should now offer this scheme through the banks to small companies, who have a business plan that would normally be loaned against by the bank, but as banks are so wary of lending, are currently turning away.

Rather than extending 'real help now' to individuals who are long term unemployed, the Government's desire to jump start the economy must be directed at small companies (£100,000 - £25,000,000) who are suffering from credit starvation.

As David Cameron attempts to strike party political points, the country's commercial sector is withering on the vine.  In fact, as I write this, Nick Robinson is talking about this very thing on the BBC 10'o Clock News.

Come on Gordon.  Back the small guys to make up for the failings of the Big Banks.  It's a drop in the ocean, compared to what's been spent so far.