Small Businesses: Loans
The question
To ask the Chancellor of the Exchequer, what estimate she has made of the number of of small business finance applications rejected by (a) high street banks and (b) all banks in (i) total and (ii) just for non asset backed lending applications in the most recent year for which figures are available.
Answered by Lucy Rigby
The Government, and specifically the Treasury, is responsible for the legislative framework for financial services, and does not collect significant volumes of market data. External bodies including the British Business Bank, Bank of England, UK Finance, and other such parties, produce certain information on the SME lending market, some of which may offer insights of this nature.
However, HM Treasury publishes statistics on the use of the Government’s Bank Referral Scheme on an annual basis, which is a Scheme designed to help match loan applicants rejected for finance with potential alternatives. The latest release covers statistics up until Q3 2024 and can be found on the Government’s website. This data represents businesses that have been rejected by designated banks under the Scheme and can be used to understand some of the rejection rate trends in the market.
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