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<p>The Small Business, Enterprise and Employment Act 2015 contained two specific policies
to support Small and Medium-sized Enterprises (SMEs) in accessing finance.</p><p>The
first requires major banks to refer SMEs they reject for finance to designated ‘finance
platforms’ that can help match SMEs with alternative finance providers. This will
ensure that viable SMEs, including businesses in Stafford, that may not fit the major
banks’ risk appetite can still get the finance they need to grow and expand. Three
platforms have recently been designated by HM Treasury on the advice of the British
Business Bank and are expected to come into operation later this year.</p><p>The second
requires the major banks to share information on their SME customers, with the SME’s
permission, with other lenders through designated Credit Reference Agencies. This
will improve the ability of challenger banks and alternative finance providers to
conduct accurate risk assessments and level the playing field between providers and
make it easier for SMEs to get finance from providers other than their bank.</p><p>The
Government is supporting the Peer-to-Peer (P2P) and Crowdfunding sectors, which provide
alternative sources of finance for both businesses and individuals. The British Business
Bank, for example, has invested £100m in SMEs via five P2P platforms.</p><p>In addition,
the British Business Bank’s Enterprise Finance Guarantee (EFG) scheme has facilitated
over £2.6 billion of bank lending and other finance to over 25,000 SMEs. Since the
start of the scheme, 45 EFG loans have been drawn down in Stafford worth over £5 million.
Government has also provided loans through the Start Up Loans Company to help new
businesses in Stafford. 42 start up businesses in Stafford have secured a loan from
the Start Up Loans Company, with a total value of over £218, 000.</p><p>More widely,
credit conditions for business continue to improve with net lending to SMEs in 2015
positive across the complete year, the first time this has happened since the financial
crisis.</p>
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