Select Committee calls urgent hearing on SME credit

The Business and Enterprise Committee has called an urgent hearing on financial support for small- and medium-sized firms (SMEs) as they struggle to secure the credit they need.

The Committee said it would take evidence from bosses of SMEs and banks in a bid to find out why SMEs are still finding it hard to borrow money despite a drop in the Bank of England base rate to 3%.

The chairman of the Committee, Peter Luff MP said:

"Despite interest rates at their lowest levels since 1954, there are reports that SMEs are finding difficulty in getting access to the credit they need for their day-to-day business. 

"This session will offer the chance to assess what is really happening now, and what is likely to happen in future, and to look at the adequacy of government and the banks' support for SMEs."

The deadline for evidence submissions is 8 December.