The availability of loans for small and medium-sized enterprises (SMEs) needs to be properly advertised by the banks and government, it is advised.

Under the Enterprise Finance Guarantee (EFG) scheme, IT firms and others can borrow money, but the Federation of Small Businesses (FSB) says more companies need to be made aware of the financial help available.

"We think it is important that all small businesses are aware of what's out there and what they are entitled to," a spokeswoman says.

For those that have been able to borrow money for things such as IT support and outsourcing, the loans have been really good news, she adds.

It is important that more companies benefit from the scheme, which requires more advertising of it to banks and businesses, the FSB spokeswoman concludes.

Announced by business secretary Lord Mandelson last month, the EFG has already offered £40 million of loans to SMEs.

According to a recent survey by Connect, the two biggest IT headaches for businesses were 'everyday hassles with IT' (37 per cent) and 'security concerns' (32 per cent).