British business bank to provide £200m in funding

The Exchequer Secretary, Robert Jenrick, has marked the launch of the new funding that will be made available to innovative businesses through funds supported by the British Business Bank.  Jenrick said ministers were determined to make the UK the best place in the world to start and grow a business. This type of funding has traditionally been sought by fast-growing firms in the science and technology sectors.

As the UK leaves the EU and the relationship with the European Investment Fund changes, the government remains committed to ensuring that innovative firms can access the finance they need to grow. The British Business Bank makes finance markets for smaller businesses work more effectively, allowing such firms to prosper and grow – therefore boosting the UK economy.

The Exchequer Secretary to the Treasury, Robert Jenrick, said “The UK is creating more start-ups and attracting more venture capital funding than any other European country, but we want to do more to ensure our small businesses and entrepreneurs can thrive. That’s why we are injecting a further £200 million into the British Business Bank, specifically to back businesses that are scaling up”.

Business minister, Kelly Tolhurst, said “We are fully committed to supporting small businesses to succeed as part of our modern industrial strategy, while building the UK’s status as one of the best places to start and grow a small business.

“This funding, supported by the government-backed British Business Bank, will play a key role in supporting innovative firms to access the finance they need to grow and thrive.”

CEO of the British Business Bank, Keith Morgan, said “We welcome HM Treasury’s confirmation today that this allocation of £200 million is now available to increase the provision of much-needed scale-up capital for innovative businesses across the UK. We look forward to putting the funding to good use through our delivery partners to enable such businesses to get the funding they need to grow and prosper.”

Tim Vine, European Head of Trade Credit at Dun & Bradstreet, said “The additional funding for British businesses is great news and will certainly be a much needed additional support for UK businesses. While the additional backing is great, it’s important for businesses to remember that there are options that business can take to ensure they grow, particularly during times of economic and political uncertainty. Not one option suits all when it comes to funding and finance and it’s important that businesses know the different choices available to them.

“With 99% of all businesses in the UK SMEs in 2018, obtaining finance is critical to support their growth. In fact, two thirds (67%) of SMEs said that the availability of finance had a significant impact on their business success. However, there is an increasing number of alternative finance options available to UK SMEs, in addition to government funding and traditional bank loans and we are already noticing a shift in the alternatives that businesses are opting for. And actually, last year nearly half of SMEs were reportedly permanent non-borrowers of external financial support. To unlock the potential of other options, SMEs need to look at their own credit profile and see how potential lenders are likely to perceive them. “

The British Business Bank currently supports more than £5.9 billion of funding to 82,000 smaller businesses.