This is because civil servants have this way no risk for their career. The statistics demonstrate huge numbers of subsidized businesses - but in the global balance, the small amounts for small businesses do not count. This does not exclude that various public funding services are relatively free from such problems. But this is mainly an exception and only concerns relatively small parts of the subsidy budgets. Banks can very well finance risk businesses - under the condition of creating a lending department outside of their regular business, intended to make higher profits, but accepting the risk of higher losses, too.
Many banks declare to have such services.
Try to make use of them, and you will see the reaction.