HM Treasury has published the government response to the Department for Business and Trade’s call for evidence on small business access to debt finance in the UK, summarising stakeholder feedback on barriers to borrowing and setting out policy and programme changes intended to improve finance readiness and access to lending. The government received 96 full responses from businesses, representative bodies, banks, non-bank lenders, brokers, business support providers and others. Key themes included low financial awareness and difficulties navigating finance options, frictions in application and approval processes, mixed experiences with commercial finance brokers, and concerns that personal guarantees can deter borrowing. The response highlights the role of the Business Growth Service and an upgraded British Business Bank Finance Hub in signposting and finance-readiness support, and confirms an expansion of British Business Bank activity including total financial capacity rising to GBP 25.6 billion and plans over five years to deliver at least 85,000 loans, extend Start Up Loans eligibility to businesses up to five years old and increase average loan sizes. On the supply side, the Growth Guarantee Scheme is being put on a longer-term footing and the capacity of the ENABLE Guarantee Scheme will increase by GBP 3 billion; a mandatory code of conduct for Growth Guarantee Scheme accredited lenders will be introduced to ensure personal guarantee communications are clear and use is fair and transparent, with primary residences already excluded from personal guarantees supporting Growth Guarantee Scheme loans. Next steps set out include Start Up Loans eligibility changing from April 2026, a National Institute of Economic and Social Research research paper on regional mutual and co-operative banking models due in January 2026, and evaluations of the Growth Guarantee Scheme expected to commence in the 2026 to 2027 financial year. The response also references Community ENABLE Funding, expected to support up to GBP 150 million of lending over the next two years, and a Responsible Finance-led CDFI Roadmap planned over a five to ten year horizon, alongside further work on open finance including a Smart Data Strategy and the Financial Conduct Authority’s SME Finance TechSprint running from November 2025 to February 2026; consultations on Commercial Credit Data Sharing have closed and the Bank Referral Scheme consultation is due to close in late December 2025.
HM Treasury 2025-12-04
United Kingdom's HM Treasury publishes response on small business debt finance with British Business Bank capacity rising to GBP 25.6 billion
HM Treasury released the government's response to the Department for Business and Trade's inquiry on small business debt finance access, highlighting borrowing barriers and policy changes. Key measures include expanding the British Business Bank to GBP 25.6 billion, extending Start Up Loans eligibility, and increasing the ENABLE Guarantee Scheme by GBP 3 billion. The response introduces a mandatory code of conduct for Growth Guarantee Scheme lenders and outlines future steps, including research on regional banking models and open finance initiatives.