In the third quarter of this year, businesses were offered loans totaling £111m (Q3 2012: £96m), reaching a three-year high, while the value of loans drawn down was £87m, the most since 2011. 

Although an improvement on figures in 2011 and 2012, the figures are still a far cry from those achieved in Q2 and Q3 of 2009 when 2,376 and 2,030 loans were offered totaling £255m and £217m respectively. 

The scheme, launched in 2009 to replace the Small Firms Loan Guarantee, enables banks to lend to SMEs that would otherwise not be eligible for credit, by providing financial institutions with a government guarantee for 75% of the loan value. 

Since May 2010 the scheme has offered 13,411 loans with a value of £1.4bn.

Since its launch the manufacturing sector has so far received the second highest number of loan offers, behind wholesale retail and trade, with 3049 loans offered to a value of £379m, and 2,712 drawn down with a value of £332m. 

Business secretary Vince Cable said the scheme was making a “vital contribution” with the figures showing that banks had “upped their game”.

But he said that access to finance for small businesses needed more work.

“There are long-standing problems with the finance markets which need addressing, and that is why I have created the British Business Bank. 

“We need a much more competitive and diverse market, which businesses of all sizes can have confidence in and which helps build a stronger economy.”

Federation of Small Businesses national chairman John Allan said that alongside the Funding for Lending Scheme (a scheme that has so far had more impact on the print industry), banks should be able to provide greater help to SMEs.  

He added: “To maintain the momentum the FSB continues to press the government to look at how the EFG can spread its scope, such as making the scheme more flexible for alternative financiers and community development finance institutions.”