The Treasury Committee has launched an inquiry into small business access to finance and small and medium-sized enterprise (SME) lending.
The cross-party committee of MPs was formed to examine the key challenges SMEs face when seeking finance, the regulation of small business lending, and the role Government can play in enhancing lending to small businesses.
MPs will investigate the accessibility of finance, the role of financial innovation in business lending, and the role of the Bank of England’s Term Funding Scheme, credit reference agencies and Government state aid in encouraging small business lending.
The Committee will also explore whether SMEs have adequate access to a complaints procedure for disputes with banks or lenders, the effectiveness of the Business Banking Resolution Service, whether business lending should be regulated, the impact of Basel 3.1 reforms on access to finance, and the performance of the Financial Ombudsman Service (FOS) in handling complaints.
The MPs will also consider the role of Government in enhancing access to small business finance, the impact of Covid-19 schemes on businesses, and the role of the British Business Bank.
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.”
She added: “We look forward to receiving written evidence on this important topic and taking oral evidence later in the year.”
