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The Funding for Lending scheme is reported to be fuelling a resurgence in the housing market, but there are doubts over its effectiveness in getting funds to businesses. Many would say loosening controls over lending to individuals and businesses got us into this mess in the first place, but to rule out profitable businesses with dynamic leaders looking to grow, lenders are surely missing the opportunity to back a winner. More importantly, society is missing out on the benefits that growing businesses provide, namely jobs in turn boosting the Chancellor’s coffers and cutting the welfare bill. It could be coming down to automated processes in high street lenders lacking the human touch, so backing the person in charge of a business doesn’t factor as highly in a decision as it has done in the past. Regular viewers of TV’s Dragons’ Den will know that as much as well-constructed forecasts matter, the Dragons quite often go with the people who have made the biggest impression on a personal level. We’re looking to recreate that with our community section that enables members to ask borrowers questions and get a feel for their business flair. We’ll also produce blogs and interviews with owners to help lenders decide whether to lend or not. At rebuildingsociety.com the most common reasons we find for businesses applying for loans are: -          To market their business or a particular service -          To fund a new hire -          To purchase another business and grow organically Although we can’t accept every enquiry, because not every business meets our entry criteria, we don’t rule out particular industries because we believe our lenders should be the ones making the decision and their interest rate reflects the risk they see in the business. What is a good opportunity for one lender might be turned down by another, but with a significant enough community of lenders, there is a viable alternative for aspirational business owners. We're also in contact with other organisations pioneering alternative ways for businesses to raise finance. If we can't help your business this time, we'll try to put you in touch with someone who can. Comment on this blog or contact nick@rebuildingsociety.com