This scheme will provide loans to small companies in the UK to become medium-sized businesses.
The programme will have a total budget of £1 billion.
Under the Help to Grow initiative, 500 firms each year will receive financial support through the British Business Bank, both through the form of loans and match funding with private investment.
In May 2016, the British Business Bank launched the initial phase of Help to Grow. The first £30 million tranche of lending supported by the programme will be available to growing businesses through Lloyds Banking Group.
Loans of up to £2 million will support the development of new products and processes, stimulate research and innovation and help businesses target new export markets.
The lending will be available to businesses across all sectors, and is expected to benefit most those with high levels of innovation and growth ambition – such as manufacturing businesses, creative industries and the technology sector.
The Government is pledging £1 billion in funding to support the development of rapidly growing small companies in the UK through this new Help to Grow programme.
The Government states that 45% of jobs growth has come from medium-sized businesses. To that end, the new scheme will provide loans to small companies become medium-sized businesses.
Help to Grow will see the Government co-investing public and private money or guaranteeing loans for 500 firms a year in an effort to create a UK version of Germany's thriving mid-market sector, known as the 'Mittelstand'.
The initial phase of Help to Grow was increased from £100 million to £200 million in the Chancellor’s Budget in March 2016.
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 once the programme opens, in order to discuss eligibility.
Small businesses in the UK will be eligible to apply.
Business development and growth projects will be funded.
Support will be offered towards the development of new products and processes, invest in research and innovation, and target new export markets.
The first phase is now open to applications, offering loans of up to £2 million to support the development of new products and processes, stimulate research and innovation and help businesses target new export markets.
Further advice and assistance with submitting an application may be sought directly from Gov.uk.