The latest lending figures from The Bank of England show that lending to small businesses has risen in the past month, a rare positive statistic as business lending has fallen year-on-year since 2009.
Lending to small business rose by £238m between May and June — the biggest monthly rise since the statistics were first produced in 2011. This took small business borrowing to £170.4bn in the month of June.
Despite this positive rise, small business lending was still lower than in the same period last year.
However, this most recent increase could signal the first positive results from the government’s Funding for Lending Scheme (FLS).
Howard Archer, chief UK and European economist at IHS Global Insight, said “The Funding for Lending Scheme could be starting to have more of a positive impact. The rise fuels hopes that banks are now becoming more prepared to lend to small businesses.”