First £45m of Business Bank funding announced by Vince Cable
Business secretary Vince Cable has announced details of the first phase of Business Bank lending, as part of a £300 million investment programme.
The first £45 million of funding allocations were made to Praesidian Capital Europe (£30m) and BMS Finance (£15m), two lenders that specialist in providing funds to small and medium sized businesses. This £45 million will now allow the two lenders to collectively provide £125 million in finance to UK businesses.
Speaking at the launch of the Business is Great Britain campaign, Cable stated: “The Business Bank is designed to achieve two things. It’s partly plugging the gap that the banks have created because of the decline in bank lending to SMEs.
It’s partly also designed to cover a longstanding British problem that ambitious growth companies find it very difficult to access long-term debt finance or equity. The Business Bank will, over the next two years, plug that gap.”
Commenting on the type of companies the Business Bank is aiming at, Cable added: “They are too small for the stock market, but have run out of the family and friends capital which funds start-ups. Those of the kind of businesses which need these facilities.”
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