I’m often asked by Chamber members if banks are really lending and I’m often assured by them that they are. So what’s the truth?

As ever, it’s a little complicated. Part of the answer can be found in the Bank of England’s Trends in Lending report.

It reported that lending to non-financial companies (that’s ordinary businesses) was up 21 per cent.

That’s positive news. But at same time the report also finds that over the last six months lending on average, was broadly close to zero.

So which is correct − is lending up, or is lending flat?

The answer is both. There is little doubt that banks are lending large amounts of new money but at the same time, SMEs are repaying their debts.

According to Trends in Lending companies are repaying debts faster than banks can lend the new money, or putting it more simply, the bath taps are on but the plug is out.

And SMEs would appear to be awash with offers to finance their businesses as other institutions fight to fill the gap left by the banks allegedly not lending.

This has manifested itself by the growth of peer-to-peer lending and the emergence of “challenger” banks.

On top of that, there is a whole raft of money available through government-funded initiatives like Regional Growth Funds.

So are the banks trying to stimulate demand themselves? RBS and NatWest have launched a
£1 million Small Business Fund – with £55 million available to both new and existing customers in the West Midlands who are looking to grow or diversify their business through new borrowing.

But what about businesses that either can’t or don’t borrow? It’s a little known fact that the vast majority of bank customers don’t actually borrow.

Sometimes they’ve no need because they’re already making enough profits, but sometimes it’s because they’re not yet ‘investment ready’.

Perhaps they’ve just got a good idea that they’re trying to develop. Maybe they’ve only been going for a short time and have no track record. Perhaps it’s just that they aren’t growing and couldn’t afford to take on new debt. I’m interested in what the banks are doing for these businesses.

NatWest has teamed up with Entrepreneurial Spark to launch a business accelerator programme especially for entrepreneurs and small businesses from February next year. And Birmingham has been selected as the first location in England, with the programme to be housed in the NatWest offices in St Philips Place.

Not just a physical workspace, the hub will offer selected entrepreneurs hands-on mentoring, a start-up bootcamp and a free programme of up to 18 months of advice, ongoing support from bank staff and funding clinics.

There will also be opportunities to pitch for cash injections for outstanding businesses. The programme will be completely free of charge to all entrepreneurs.

They are now looking for applications from businesses from any sector with a maximum turnover of £1 million and that have been trading less than four years. Full details on the application process can be found at www.entrepreneurial-spark.com.

Barclays successfully launched its Accelerator initiative nearly a year ago to offer a three-month intensive start-up programme in partnership with Techstars, designed to support new businesses deliver breakthrough innovations in financial technology. Information for the second cohort can be found at www.barclaysaccelerator.com

Barclays also provide a £20,000 limit Cashback for Business scheme for SMEs with a turnover of less than £5 million as well as a partnership with School for Startups to give new businesses a kick start.

Santander has also turned its attention to larger businesses, worrying that maybe those business with a turnover of more than £25 million are being ignored by government initiatives. So banks are lending but when it comes to supporting local businesses in achieving their goals, it’s actually about much more than just that. Banks are supporting our local business community and encouraging growth in new ways.

Initiatives like these from the banks are warmly welcome.

They demonstrate they are serious about getting their ‘open for business’ messages out there and want to see businesses thrive.

With indications that 2015 will be a year of economic growth, SMEs now need to ensure they are fully prepared for growth and ready to get ahead.

Our banks are central to this and must continue to make it possible for Birmingham’s businesses to reach their goals – whether it be through export, diversification or expansion.

Signs are optimistic, with major banks clearly already thinking long term.

That is good for business, good for banks and ultimately good for the local economy.

* Jerry Blackett is chief executive of Greater Birmingham Chambers of Commerce