Parliamentary inquiry to explore how to boost small business lending
A cross-party Committee of MPs has been tasked with uncovering the challenges that SMEs face when seeking finance. As part of an inquiry launched this month, the committee will investigate small business lending and government regulation, and explore ways to enhance access to crucial funding for UK businesses.
It’s no secret that securing the necessary funding often isn’t easy and, with trading conditions remaining extremely tough, ensuring this process is improved is vital to adequately supporting SMEs in the years to come.
Unveiling the challenges
Launched on 3rd July, the inquiry will seek to understand the key challenges that SMEs encounter, looking into the accessibility of finance, exploring the role of financial innovation in business lending and investigating the impact of government initiatives like the Bank of England’s Term Funding Scheme, credit reference agencies and state aid programs. The Committee’s goal is to identify the existing barriers and ways to improve the funding landscape, making it more accessible for SMEs.
The inquiry will explore the role the government can play in supporting business growth. Its aim is to understand how government schemes, including those implemented during the COVID-19 pandemic, have impacted businesses. Additionally, the Committee will be examining the role of the British Business Bank in facilitating access to finance. It will be inviting written evidence submissions to gain insights and experiences.
In addition to this, the inquiry will also investigate whether SMEs have adequate access to complaints procedures, evaluating the effectiveness of the Business Banking Resolution Service, and even consider the need for further regulation in the sector.
Commenting on the new inquiry, Harriett Baldwin MP, Chair of the Treasury Committee, said:
“Small businesses are the lifeblood of local communities, powering economic growth and fostering innovation and an entrepreneurial spirit. As a Committee, we’ll be examining whether small businesses are able to access the finance they need to grow and develop, whether there is adequate regulation of the sector, and if Government can take a more active role to support business growth.
“We look forward to receiving written evidence on this important topic and taking oral evidence later in the year.”
Access to funding
As a commercial finance brokerage, Hilton-Baird’s team work closely with businesses to understand their unique needs and challenges to identify the solutions that are available to support them with their day-to-day needs, as well as their longer term goals.
If you would like assistance in finding funding for your business, we would be delighted to help. A commercial finance broker with over 25 years’ experience of supporting SMEs with their funding needs, we can introduce you to the right funders and funding solutions to support your business now and into the future. To speak to our team, call 0800 9774833, request a call back or contact us via live chat.