SME loan refusal rate drops to three-year low

Banks are lending to small businesses again, according to the latest survey by business body ISME.

The Irish Small and Medium Enterprise association's quarterly bank watch figures show that more than one in two businesses (56%( was successful in getting a loan.

Refusals were down to 44%, which ISME says is the best rate since September 2010.

The body says the results are positive and point to a trend of back to 'normal' banking.

But ISME says the cost of banking is increasing.