A leading bank has pushed up lending to small and medium sized firms by 4.9% across Kent and East Sussex, according to its regional boss.

Phil Beales, regional director for Lloyds TSB Commercial Banking in Kent and East Sussex, said the bank was ahead of the national figure for lending to SMEs - up 4%. Eligible SMEs could tap into a pot of £5 billion this year.

Lloyds TSB has committed £18.4 billion in gross new lending since its joined the Funding for Lending Scheme (FLS). In the first four months of 2013, it advanced more than £2 billion of new mortgage lending to more than 18,500 First-Time Buyers and has pledged £6.5bn in 2013.

Mr Beales was speaking after the Bank of England released the latest figures for the FLS which allows banks to draw down money at 0.25% providing they meet certain lending rules. It aims to stimulate banks to lend more to firms and first-time homebuyers. Some of the data showed that lending had fallen.

“The acid test for the Funding for Lending Scheme’s success is whether we are lending to SMEs and First Time Buyers,” Mr Beales said. “We have been growing our SME lending by 4.9% a year on a net basis in Kent and East Sussex. We have also pledged to increase our new lending to first time buyers to £6.5bn in 2013 compared to £6bn last year.”

Lloyds TSB applies a 1% discount to its rates for SME borrowers. Mr Beales singled out Ramsgate-based Business Computer Systems as an example of a business the bank had helped to grow. It had loaned the company £122,000 for new premises. “We were delighted to support them with a £122,000 loan through the Funding for Lending scheme which has not only enabled the business to do a relocation but also create a great environment and drive their next growth phase.” The deal had created four new jobs.

Mr Beales said that in the four years he’d been involved in the Kent business scene, “we are probably running at our healthiest and highest approved lending position.”

There were also a lot of inquiries that had yet to be through the credit process. “I’m quite positive that the business locally is starting to move in a more progressive way.”

There was no better time for a business to ask for a loan. Eight out of every 10 applications were approved. “I would encourage all businesses to think about their ambitions and plans. We have seen some exciting transactions like Business Computer Systems. I’m feeling that things are moving in the right direction.”

Mr Beales added that the reason for the Bank of England figures showing reduced lending was due to Lloyds TSB pulling out of “non-core” lending such as aviation and shipping. “It’s unfortunate that these are the numbers that got captured in the reduced lending figures. The decline in our overall lending in the first three months of 2013 as reported in the latest Bank of England figures, is entirely the result of this shift in focus and the figures show a reducing rate of decline, which demonstrates the progress we are making towards achieving overall growth in our lending this year.”

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