Proof that HSBC won't lend to pubs

HSBC is the bank that likes to say "no" to pubs — it's official.

An email from an HSBC local manager, seen by the Morning Advertiser, shows clearly that the bank does have a policy of not lending to pubs and similar businesses.

HSBC — which has promised an extra £1bn lending to small and medium firms this year — has always denied it has such a policy and repeated that claim this week.

Licensee Kerry Heywood requested an overdraft of £3,000 to £5,000 and in an emailed response, her bank manager said: "Unfortunately we are not able to provide lending at the moment. The bank is not lending to pubs, clubs, restaurants and wine bars at the moment and I couldn't push it through I'm afraid.

"It is purely due to the recession that the bank has taken this decision."

Heywood, Enterprise lessee of the Rose and Crown in Hawridge, Buckinghamshire, told the MA: "It's really disappointing.

"We are working really hard to start up our own business. We feel they are not giving us the time of day because of the industry we are in.

"They wouldn't take into consideration the fact we've got a good credit rating and we've been doing OK in the recession."

Several licensees have told the MA that HSBC — and other major high street banks — tell them they're not currently lending to pubs.

London host Neil Moore, who was declined an overdraft from HSBC, was told in a letter from the bank's service quality team said: "The bank's willingness to grant new lending to a business in your industry is extremely limited."

Moore, tenant at two Young's pubs — the Surprise in Stockwell and the Plough in Clapham — said: "It makes me furious."

An HSBC spokesman said: "Lending to the hospitality industry is by no means prohibited. We have many customers in this industry.

"However due to the economic climate, we do need to look at new lending very carefully and consider each case individually. Again I stress, there is no blanket ban."

• Sir Alan Sugar plans a national roadshow of bankers to urge them to lend more to small firms in his new role as the Government's enterprise tsar.

'Lottery' scheme starting to work ​

The Government-backed loan scheme for businesses is starting to pay off — although it can still be a "lottery", MPs have been told.

The Enterprise Finance Guarantee Scheme is being probed by the Business and Enterprise Committee after claims that firms had trouble accessing finance. Firms with a turnover under £25m can access the scheme, which sees the state guaranteeing up to 75% of loans to small and medium businesses from high street banks.

Andrew Cave, head of policy at the Federation of Small Businesses, told the MPs: "When it was launched there were problems. Those hurdles have been overcome."

Russell Griggs, chair of the council for small and medium firms at the CBI, said the scheme was "stimulating a lot more positivity". He expected it to hit its £1.3bn loans target by next March.

Forum for Private Business chief executive Phil Orford said money is now getting through but "there's as bit of a bank lottery out there."

• What's your experience of the Enterprise Finance Guarantee Scheme? Email wbua.uneevatgba@jvyyvnz-errq.pb.hx​.