Small and Medium-Sized Enterprises: Funding — Question

Part of the debate – in the House of Lords at 2:43 pm on 25th June 2013.

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Photo of Lord Popat Lord Popat Lord in Waiting (HM Household) (Whip) 2:43 pm, 25th June 2013

My Lords, since the banking crisis in 2008, the banks are a little risk averse. They do not want to have excessive lending. At the same time, the SMEs are risk averse too; 61% do not actually borrow money for their businesses, mainly because they have retained profits to run their business but quite often because they use their own capital. However, I agree with the noble Baroness that awareness is key. This is where we have partly failed, and we are taking steps to ensure awareness. Having said that, we launched the Funding for Lending scheme this time last year, and so far we have lent £16.5 billion through it. That is a pretty good record for the Government.