FSB calls for banks to lend more next year

The Federation of Small Businesses (FSB) is calling on banks to return to their “normal lending criteria” next year.

The FSB, which represents 215,000 small firms across the UK, said Britain’s five million small businesses will be at the heart of the UK’s move out of recession, but need more help.

FSB chairman John Wright said: “2010 must see the route to recovery. Small businesses deserve a big vote of confidence and the sector in turn will return the compliment with jobs, guaranteeing a sustainable recovery.

“2010 may be a general election year, but for small firms, it will be business as usual as they strive to complete the route from recession and back into recovery,” added Mr Wright.

The FSB is therefore urging the Government to take action to help smaller businesses including making it simpler to establish a business and create jobs.

In response, a Department for Business spokesperson said: “We have extended the Enterprise Finance Guarantee for a further 12 months to encourage additional bank lending to viable smaller firms.

“We are working with the FSB to offer up to 10,000 graduates a chance to boost their future employability through internships in small and micro businesses,” it added.

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