The first phase of lending by the new Business Bank has been launched by Business Secretary Vince Cable, which will give UK SMEs the opportunity to grow and develop their business even further.
The Business Bank has had £300 million invested into it by the government, as well as additional private investment. As part of the 2012 Autumn Statement, the Chancellor stated that up to £1bn will be invested into the bank over a certain period of time, however, the proposal is not thought to go ‘live’ until next year.
This new Business Bank will certainly look to support SMEs by encouraging their growth and giving them more access to financial lending.
Business secretary, Vince Cable, said, “SMEs are still telling me that access to finance is their number one problem, preventing them from investing and growing.
“That’s why through the business bank we are developing a range of measures to provide businesses with the power to choose the type of finance that suits them.
“Today’s £300 million boost shows we are serious about increasing competition and diversity in the business lending market. Establishing a lasting business bank institution is a long-term project, but getting this money reaching SMEs as soon as possible is the first step.”
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