Bank lending must be more accessible and affordable to plug a ‘permanent gap' in small business finance, according to the Forum of Private Business (FPB).

The FPB's submission to the Rowland's Growth Capital Review, which highlighted a major shortfall in growth capital for businesses seeking between £2m and £10m, called for a range of finance options to be made available for more small firms.

Following the review, which was led by venture capital expert Christopher Rowlands and included Dragons Den' entrepreneur James Caan, the government announced plans to introduce a new growth capital fund to plug the gap.

However, the FPB is calling on banks to also play their part by increasing the availability of lending.

"We are entering a key period as firms are likely to require finance from a greater range of sources over the next year. Growth funding is certainly welcome but must be accompanied by more sustainable banking lending and public sector support so that they are able to take full advantage of future opportunities," said Matt Goodman of the FPB.