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BANKING FIGURES CONFIRM DECLINE IN SMALL BUSINESS LENDING
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July 30 2010.
The Forum of Private Business is responding to the latest figures from the British Bankers’ Association (BBA), which show that lending to the UK’s small firms is in decline.
The banking trade association’s figures indicating that new loans to small firms increased by £75 million between May and June 2010, but year-on-year term lending has decreased by £269 million, compared to June 2009 – when the economy was still in recession.
Average monthly loans have declined by almost half since 2008, when banks lent an average of £991 million to small firms. In 2010, the average monthly loan rate is £564 million.
In addition, overall lending has decreased significantly in 2010 despite small businesses increasing deposits into banks by £2.5...
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