Chancellor George Osborne will unveil three credit easing schemes to release £20bn in loans to small firms when he delivers Tuesday's autumn statement.
Under one such plan, the government would underwrite banks' borrowing so they could pass on cheaper loans to firms turning over less than £50m.
The government wants to keep credit lines flowing to boost economic growth.
But shadow chancellor Ed Balls said access to credit alone would not be enough to restore business confidence.
Mr Osborne's first scheme would see the government provide a guarantee for banks to borrow on the financial markets.
Those institutions would then be obliged to pass on the cheap lending rates to small and medium-sized companies.
It is said to be similar to the Labour government's credit guarantee scheme of 2008, launched in the wake of the credit crunch.
Chancellor George Osborne will unveil three credit easing schemes to release £20bn in loans to small firms when he delivers Tuesday's autumn statement.
Under one such plan, the government would underwrite banks' borrowing so they could pass on cheaper loans to firms turning over less than £50m.
The government wants to keep credit lines flowing to boost economic growth.
But shadow chancellor Ed Balls said access to credit alone would not be enough to restore business confidence.
Mr Osborne's first scheme would see the government provide a guarantee for banks to borrow on the financial markets.
Those institutions would then be obliged to pass on the cheap lending rates to small and medium-sized companies.
It is said to be similar to the Labour government's credit guarantee scheme of 2008, launched in the wake of the credit crunch.
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