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Government launches Small Business Credit Adjudicator task force
The Department for Business, Innovation and Skills has launched a new task force, which will advise the Government on the role and responsibilities of the new Small Business Credit Adjudicator (SBCA).
The SBCA was announced in the 2010 Budget, and the task force will be run by Lord Alan Sugar, outgoing Federation of Small Businesses chairman John Wright, and former Lloyd’s TSB deputy chief executive Mike Fairey.
The aim of the SBCA is to ensure that small businesses are treated fairly when accessing bank finance. Once it has been established, the SBCA will hear cases where a business may have been unfairly denied credit.
Commenting on the launch, business secretary Lord Mandelson said, 'There is a perception among small business owners that banks are unfairly denying them credit. This task force will help us understand the root of these concerns'.
The task force will produce a consultation document in the summer which will consider potential powers and sanctions for the SBCA, such as powers to demand bank information and the naming and shaming of banks found to have denied credit unfairly.
The SBCA will work in conjunction with Business Link’s Financial Intermediary Service.