SMEs to get Government watchdog for loans

The Enterprise Tsar of the Government is set to lead a three member team that will advise ministers on how to make sure that all SMEs receive proper and fair treatment when seeking loans or credit from banks.

Business Secretary Lord Mandelson expects the group to help create a path that will lead to the appointment of a SBCA or Small Business Credit Adjudicator whose responsibility it will be to referee any disputes although the position will not be enacted until after the General Election.

Lord Sugar has already had a row with task force member John Wright the former chairman of the FSB.  Wright called for his resignation in November of 2009 when the new Business Tsar said that companies that are struggling are comparable to those who moan even though they live in a ‘Disney World.’

He also stated that 85pc of SMEs that want bank loans should instead be seeking the advice of a bankruptcy adviser adding that most of the companies that are complaining are those that he would not even consider lending a penny to.

Currently, Mr. Wright and Lord Sugar are understood to be on good terms, but the decision to make an Ombudsman type complaints body announced as part of the Budget last week has already caused one political row with the CBI director general, Richard Lambert, stating that the proposal will never actually come about because it is ‘pure political rhetoric’ that will never work.
In response, Lord Mandelson stated that Lambert is siding with the bullying banks and betraying SMEs.