FACTBOX-British measures to support small businesses

LONDON (Reuters) - Britain launched a 20 billion pound finance guarantee scheme for small and medium sized businesses on Wednesday in an effort to support cash-strapped firms through the fast-approaching recession.

Below are the key points from the aid package:

WORKING CAPITAL SCHEME

* Expanding a one billion pound guarantee scheme just for exporters which it set out in November's pre-budget report, the government is now offering to secure up to 20 billion pounds of lending to any businesses with turnover of up to 500 million pounds.

* The government will guarantee up to 50 percent of loans submitted by banks, with lenders paying a premium for using the scheme. Barclays, HSBC, Lloyds TSB and RBS have expressed an interest.

* The government hopes the guarantee will enable banks to free up capital to boost lending further to business. Banks have agreed to this principle.

* Subject to European Union state aid clearance.

ENTERPRISE FINANCE GUARANTEE

* This one billion pound guarantee for small, credit-worthy companies with an annual turnover of up to 25 million pounds will support 1.3 billion pounds of bank lending.

* Under the scheme, loans of up to 1 million pounds over a period of up to 10 years will be 75 percent guaranteed by government and 25 percent guaranteed by banks.

* Barclays, Clydesdale/Yorkshire Bank, HBOS, HSBC, Lloyds TSB, RBS/NatWest and Northern Bank have signed up.

CAPITAL FOR ENTERPRISE FUND

* The government is upgrading to 75 million pounds a plan announced in the pre-budget report for a 50 million pound fund to switch business debt into equity. The fund will be two-thirds financed by the government, and one third by Barclays, HSBC, Lloyds TSB and RBS.

(For analysts' comments on the government's plans, click on

(Reporting by Matt Falloon, editing by Kate Kelland)