The British Business Bank (BBB) has set out a five-year plan in response to updated guidance from the UK government to change the way smaller businesses across the country access finance.
Following an increase in its permanent financial capacity to £25.6 billion ($33.5 billion) earlier this year, BBB will use its banking and investment businesses, along with its business development function, to implement several objectives over the next five years.
Among its key actions, BBB proposes to expand its annual funding activity by two-thirds, which is expected to bring in around £26 billion of private capital, as well as £13 billion of its own resources.
In addition, up to £10 billion in loans will be allowed to smaller businesses through guarantee schemes.
BBB plans to provide seed capital for transactions supporting new technologies where the UK aims for a global leadership position.
Increased risk tolerance at the portfolio level will focus on areas identified in the industrial strategy.
It intends for more than 60% of its venture and growth venture investment to be directed into growth companies and plans to make larger individual investments in excess of £100 million in selected growth stage funds.
The intention is to undertake further expansions which are deemed important to secure the internal funding required for expansion within the UK market.
BBB will provide 85,000 seed loans and allocate £150 million to community development financial institutions to reach business owners.
Plans include increasing regional investment, supporting new angel networks in regional markets, developing science and innovation clusters and launching two new regional investment funds in the east and south-east of England.
Louis Taylor, CEO of BBB, said: “By 2030, our ambition is clear: a more dynamic and inclusive financial ecosystem, where innovative and ambitious businesses, wherever they are and whoever leads them, can access the capital they need to not just start, but to scale, stay and succeed here in the UK.
“Our planned activity over the next five years is expected to fund around 180,000 businesses, support the creation of around 370,000 new jobs, attract £26bn of additional private capital and help deliver £68bn of benefits to the economy.”
“British Business Bank unveils new plan to boost small business funding in the UK” was created and originally published by Leasing Life, a brand owned by GlobalData.
The information contained on this site has been included in good faith for general information purposes only. It is not intended to be advice on which you should rely, and we make no representation or warranty, whether express or implied, as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action based on the content on our site.