The British Business Bank makes investments into providers of finance to smaller business in the UK.
The British Business Bank brings expertise and Government money to the smaller business finance markets. It works through more than 80 finance partners in the market to unlock up to £10 billion of new finance and bring greater choice and information on finance options to smaller businesses. The Bank’s programmes are designed to bring benefits to smaller businesses that are start-ups, high growth, or simply viable but underfunded.
It has a commercial arm, [GF051176] British Business Bank Investments Ltd,[/GF] which makes investments into providers of finance to smaller business in the UK to get money flowing to small businesses as fast as possible to help them expand.
The British Business Bank aims to increase the supply of credit to small and medium-sized enterprises (SMEs) in the UK, as well as providing business advice services. The Bank seeks to earn a commercial return by investing debt and equity into providers of finance to smaller businesses. In doing so, the Bank wishes to:
- support the development of diverse debt and equity finance markets which supply small to smaller businesses;
- increase the level of finance to those businesses, in particular improving the provision of long-term finance; and
- promote competition and increased supply through new and existing finance providers.
The British Business Bank does not provide funding directly to businesses. It works in conjunction with private sector partners to enable businesses to access more finance from a greater number of providers, through a wider range of products. The goal is to change the structure of finance markets for smaller businesses, so these markets work more effectively and dynamically. It is anticipated that this will help businesses prosper and build economic activity in the UK.
The Bank’s overarching objectives are as follows:
- Increase the supply of finance available to smaller businesses where markets don't work well.
- Create a more diverse and vibrant finance market for smaller businesses, with a greater choice of options and providers.
- Build confidence in the market by increasing smaller businesses’ understanding of the options available to them.
Although there are no specific exclusions cited within the programme guidelines, those wishing to apply are advised to liaise with the funding provider in the first instance to discuss eligibility.
The Bank supports providers of finance to smaller business in the UK, including the full range of finance providers such as banks, leasing companies, venture capital funds and web-based platforms.
The Bank welcomes proposals from lenders whose focus is to provide lending to viable businesses operating in the UK with turnover of up to £100 million.
Match funding is not a stipulated requirement of this programme.
Costs associated with eligible projects.