The BBA's monitoring of the main banks involved in the SME market reveals that term lending rose by 18% during the year and has reached £32 billion.
Other findings show that overdraft lending saw a rise of 8% over the year, to £8.6 billion, whilstdeposits saw an annual rise of 3%, to £39.9 billion. In addition, 539,200 businesses had established new banking relationships over the previous twelve months.
Ian Mullen, BBA's chief executive, said: "The annual growth in small business borrowing and depositsshow different pictures at the mid-year position. Support for small businesses by way of bank lending grew by 15% in the year, while in the same period deposits grew by 3%.
"Term loans account for the majority of the rise in lending, with small businesses displaying a confidence in structuring their borrowing requirements over the longer-term. New business start-ups continue at a constant pace, with over half a million accounts opened over the twelve months to June."