Nick Clegg plans 'dating agencies' to match entrepreneurs with rich backers In speech to business leaders, the Deputy Prime Minister will attack banks for failing to lend to firms that are "crying out for cash," and call for more local banks to be set up to compete with high street giants. Ministers are acutely aware of complaints from small businesses that they are struggling to secure the capital they need to operate. The Government has been criticised for not doing enough to force banks, including those with billions of pounds of backing from the taxpayer, to lend. In a "message to banks," Mr Clegg will say: "Yes, get your balance sheets in order... but don't unnecessarily hoard capital when businesses need loans. Don't sit on your hands while firms are crying out for cash. Ministers will promote forms of non-bank lending to businesses, by investing £1.2bn in a new Business Finance Partnership. Mr Clegg will say £700m will be invested through up to seven fund managers who will lend directly to British firms. There will be additional investment from the private sector with our share eventually returned to government. One attractive possibility will be to encourage "peer-to-peer lending," in which investors are introduced to firms needing cash through organisations that act like "dating agencies that match people with money to entrepreneurs." Mr Clegg will say he wants to see more small, independent banks lending to local businesses to rival the well-known high street giants that are slow to provide loans.