By Max Clarke
HM Treasury has delayed the announcement of an agreement over funding for small business.
The agreement, known as ‘Project Merlin’ was to have made around £200bn in loans available to small businesses this year. Negotiations are now set to continue as banks argue that targets for lending to weaker businesses may go against shareholders’ interests.
James Meekings, co-founder of Funding Circle, comments:
“The delay over Project Merlin is another example of the banks stalling over lending to small businesses and another blow to their credibility as sources of finance.
“Britain’s SMEs are in desperate need of the additional funds. At Funding Circle people are beginning to fill the void left by the lack of bank lending, helping strong, local businesses to grow and expand.”