6.1 The government agrees with the Committee’s recommendation. Target implementation date: Spring 2023 6.2 As highlighted in the Bank’s most recent Small Business Finance Market Report, the provision of alternative finance recovered somewhat in 2021-22, reflecting the ending of the COVID-19 loan guarantee schemes in March 2021. Challenger banks regained the market share they had pre-pandemic, asset finance and invoice lending grew but was still below 2019 levels, and marketplace lending began to increase again. 6.3 The Bank has an explicit objective to improve the diversity of finance products and providers. It continues to monitor trends in the small business finance market and engages closely with stakeholders across the landscape. The next iteration of the Small Business Finance Market report, expected in Q1 2023, will continue to report on the evolution of the small and medium-sized enterprises (SME) lending market. 6.4 The Bank’s existing programmes continue to help challenger and specialist banks to make the SME banking market more diverse, for example through ENABLE Guarantees, the British Business Investments subsidiary, the Regional Funds, and the Recovery Loan Scheme. 6.5 The government agrees with the Committee’s recommendation. Recommendation implemented 6.6 As mentioned in response to recommendation 6a, the Bank ’s most recent Small Business Finance Market Report indicates that the SME ending market has essentially been restored to its pre-pandemic state, reversing the market distortion the COVID-19 loan guarantee schemes might have introduced. The Bank will continue its efforts in improving the diversity of finance products and providers.