Ministers are drawing up plans to aid Britain's flailing car industry, which may receive taxpayer-funded loans in order to help them through the recession. The government is said to be keen on helping small businesses and those suffering most from the economic downturn as opposed to responding to Conservative calls for a national loans guarantee scheme, The Daily Telegraph reports. Business secretary Peter Mandelson is currently considering proposals to offer government guarantees to banks lending money to car firms on a short-term basis. Ministers are also hoping that a new Bank of England scheme, which will offer tens of billions of pounds in bank loans, will help boost the economy and get the banks lending to homeowners and businesses again.