Lending to small businesses rises

High street banks' lending to small businesses rose by £153 million in May and deposits increased by £250 million. Over 45,000 new small business banking relationships were established in the month, according to the British Bankers’ Association.

Commenting on the data, BBA statistics director, David Dooks, said: "The small business sector saw another monthly increase in its borrowing from the high street banks in May, while reduced trading activities and greater control of liquidity were reflected in increased deposits and little-changed overdraft levels. Through the economic downturn, banks are working to support small businesses and more than 45,000 new banking relationships were opened in May."