As per the banking trade association’s statistics, there is an increase in new loans to small firms by £75 million between May and June of 2010. But year-on-year, there is decrease in term lending by £269 million compared to June 2009, during which the economy was still in recession. There is also a decrease in average monthly loans by half since 2008. In 2008, banks were lending on an average of £991 million to small firms, but in 2010 the average monthly loan rate is £564 million.

According to the British Banker’s Association(BBA), there is a drop in overall lending in 2010, though the small businesses are increasing deposits into banks by £2.5 billion over the past four months. As per the Forum’s latest Economy Watch Survey, there is a decline in the loan facilities for the 358 members on the member panel by £66,000 in the past month and while there was a decrease in overdrafts by £34,500.