British Business Bank sets out five-year plan to transform small business finance

"Under the strategy, the Bank will significantly expand its investment activity, take on higher levels of portfolio risk and direct more support to scale-ups, regional clusters and science-based industries identified in the Government's Modern Industrial Strategy. It intends to increase annual deployment by two-thirds, unlocking a projected £26 billion of private capital alongside £13 billion of public funding, and enabling up to £10 billion in small business lending through guarantees."

"A major focus of the plan is supporting fast-growing firms. The Bank said it would target more than 60% of its venture and growth-stage investment towards scale-ups, and gain the ability to write £100 million-plus cheques to the most promising funds. It will also increase the size and number of direct investments to ensure strategically important UK companies can raise domestic capital rather than turning overseas."

The British Business Bank will use an expanded mandate and increased government backing to scale activity across the next five years. Financial capacity rises to £25.6 billion and annual deployment will increase by two-thirds to mobilise private and public capital and guarantee up to £10 billion in small business lending. The Bank will target scale-ups with over 60% of venture and growth-stage investment, enable £100m-plus fund cheques, and grow direct investments to retain domestic capital. Regional and inclusive measures include 85,000 Start Up Loans, £150m for CDFIs, and new regional investment funds.

Read at Business Matters