UK banks miss small business loan targets

Date: 13th February 2012

Small businesses have not been given the financial support intended by Project Merlin, new figures have shown.

The government initiative saw the UK's five biggest banks agree to lend £76 billion to smaller businesses over the length of the project.

However, recently-published data has shown that the target was missed by some distance, with a total of £74.9 billion being loaned to smaller enterprises.

While the overall Project Merlin target was met, the figures show that access to credit remains a challenge for the country's small businesses.

According to a spokesman for the Merlin banks, the target miss can be attributed to a lack of demand, confirming that finance requests fell in three out of four quarters last year.

"The Merlin banks have met their overall business lending commitments. This performance demonstrates the banks’ commitment to providing businesses with the financial support they need to invest and grow and the significant progress made this year," the spokesman said.

Posted by Emily Smith