The British Business Bank will direct the cash into SME funding in a bid to reassure UK businesses of continued support as Brexit changes draw closer
Innovative UK businesses are set to benefit from £200m in government funding through the British Business Bank.
The financial support has been earmarked by the Treasury to help growing businesses, as the UK prepares to leave the European Union and “change” its relationship with the European Investment Fund, which has historically provided backing to SMEs across Europe.
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 £200m into the British Business Bank, specifically to back businesses that are scaling up.”
The state-owned economic development bank will make the new funds available to businesses through its venture capital and growth finance partners.
The move is a bid to reassure UK SMEs that they will continue to be backed financially – despite the country’s planned withdrawal from the EU, which will bring an end to the economic support it provides.
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 will play a key role in supporting innovative firms to access the finance they need to grow and thrive.”
What is the British Business Bank
Established in 2014, the British Business Bank currently provides more than £5.9 billion in funding to 82,000 small businesses across the UK.
A recent beneficiary of its backing is financial risk assessment firm Quantexa – which was last month admitted to the Tech Nation Future Fifty programme for supporting fast-growing late-stage tech companies.
Funding provided through the government-owned lender has typically been sought by firms in the science and technology sectors that are quickly scaling their operations.
British Business Bank CEO Keith Morgan said: “We welcome HM Treasury’s confirmation today that this allocation of £200m 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.”