Parliamentary Search

Written question asked by Lord Taylor of Warwick (Non-affiliated) on Monday, 22 January 2018, in the House of Lords. It was due for an answer on Monday, 5 February 2018. It was answered by Lord Henley (Conservative) on Monday, 29 January 2018 on behalf of the Department for Business, Energy and Industrial Strategy.

Small Businesses: Loans

Question

To ask Her Majesty's Government what assessment they have made of the impact of Brexit on those small businesses that are trying to secure finance.

Answer

The most recent figures from the SME Finance Monitor[1] (September 2017) show that 78% of applications for finance made in the 18 months to Q2 2017 resulted in a loan and overdraft. Established businesses are more likely to be funded, with 96% of applications for a loan or overdraft renewal being successful as against 63% of new applications.

There is no evidence of any adverse direct effect on these figures arising from the decision to exit the European Union. It is worth noting that the proportion of SMEs planning to grow in the next 12 months has remained largely consistent over the last two years, with 45% reporting an intention to grow in Q2 2017, compared with 43% in the previous quarter. Larger SMEs (with 50-249 employees) report greater ambition to grow in the coming year, at 72%.

[1] An independent report by BDRC Continental, September 2017

https://www.bdrc-group.com/wp-content/uploads/2017/09/BDRC_SME_Finance_Monitor_Q2_2017.pdf

Secondary information

Type
Written question
Reference
HL4967
Session
2017-19
Attachment
SME Finance Monitor
Subjects
Loans Small businesses Brexit
Link
View this Written question on www.parliament.uk