Small businesses have not been lent as much money as promised under a government deal with the European Investment Bank (EIB) that provided British banks with access of up to £4bn worth of loans.

The deal was made last autumn and the treasury commented that, "£1bn of EIB funds will be available to SMEs by the end of 2008." It has been revealed that the actual figure lent to UK firms in 2008 via the scheme stands at £24m.

The government and UK banks have been criticised for the slow pace at which the European funding is being passed onto small companies in the UK, with many small firms currently experiencing cash-flow difficulties.