As the current banks don’t want to lend to small business, and a very important job-creating sector is being suppressed, there needs to be a new bank set up especially for this purpose.
The bank should be given the power to create its own money, like the Bank Of England, which could be issued on a basis that all lending must generate business growth which otherwise would have been lost to the economy.
Businesses that grow create wealth, pay taxes, and employ people. The rate of interest could be set at the rate at which the sector provides a return to the bank, taking into account bad debts, and so all the extra growth above the cost of interest, would be to the benefit to the economy and society at large.
The SBB should be permitted to issue a sum to invest nationally, and be measured against its stated objectives. Its money issuing powers would be limited by the scale of the sector it is investing into. It could say create up to a maximum of 500,000 loans of up to a maximum of £100,000, averaging £50,000, requiring a mere £25 billion to transform the small business economy, and double or treble its size.
Once businesses grew to require loans above £100,000 they would be bankable with traditional business banks, and would have to move on.
The negotiation of the loans could be made by arrangement with local bodies such as Parish or Town Councils in the first instance, in association the Federation of Small Business and banking consultants experienced in business banking. No need to trouble the Treasury. It would a self contained banking sector from start to finish, working locally. A new economy would arise. But that of course is not what the cartels that control politics and the media want at all.