Business secretary Lord Mandelson has claimed that the Enterprise Finance Guarantee scheme has loaned more than £40m to small businesses in the UK.

The loan scheme has recently come under criticism, with many small companies complaining that they are not able to access the funds through their bank.

Recent analysis from the Financial Times suggested that the amount of money loaned only stands at around £12m.

"Inevitably it takes time for schemes to take effect but the amount already lent, in only a matter of weeks, is good news for business," said Lord Mandelson.