Written question asked by Michael Grylls (Conservative), in the House of Commons. It was due for an answer on Wednesday, 12 March 1997. It was answered by Richard Page (Conservative) on Wednesday, 12 March 1997 on behalf of the Department of Trade and Industry.

Dept of Trade and Industry

Question: What assessment he has made of whether the participating lenders under the Small Firms Loan Guarantee Scheme are fully informing unsuccessful applicants of the reason for rejection, differentiating between ineligibility, lack of a viable business proposal and lack of credibility of the applicant.

Answer: Sir Michael Grylls: To ask the President of the Board of Trade what assessment he has made of whether the participating lenders under the small firms loan guarantee scheme are fully informing unsuccessful applicants of the reason for rejection, differentiating between ineligibility, lack of a viable business proposal and lack of credibility of the applicant. [19752] Mr. Richard Page: No assessment has been made of the information given to an applicant where their loan application has been rejected. The Scheme is only appropriate when a lender considers the business proposal for a loan to be viable and would be prepared to lend but for the lack of collateral to use as security against a conventional loan or overdraft. If the loan application fails to meet the lender's normal commercial appraisal criteria the Scheme should not even be considered and the notification of rejection should be subject to the lenders standard practice. Any complaints received by the Department are investigated and, where appropriate, the matter is taken up with the lender concerned.

Secondary information

Type: Written question
Reference: 19752; 292 c257W
Session: 1996-97
Subjects: Small businesses Small firms loan guarantee scheme Loan guarantee scheme