BRUSSELS (Reuters) - European Union state aid regulators approved on Wednesday a British plan to help small and medium-sized businesses borrow the cash they need to grow after British authorities amended the scheme to prevent distortion of competition.
The sector is seen as a key element of Britain's economic recovery by helping to create growth and jobs while generating tax revenues to close the public deficit.
The scheme, known as the UK Enterprise Capital Funds, will be in effect for 10 years.
The European Commission said Britain will limit its contribution to the scheme to 60 or 66 percent based on the profile of the funds. Aid will only be granted to companies facing an equity gap.
(Reporting by Foo Yun Chee; editing by Adrian Croft)