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Cable launches first Business Bank funding for small business

The Business Secretary Vince Cable has unveiled the first allocation of funding from the newly installed British Business Bank, alongside a package of other support measures for small businesses.

£45 million of funding is to be committed to Praesidian Capital Europe (£30 million) and BMS Finance (£15 million) to provide debt finance of approximately £125 million through their respective new funds.

It is the first stage in the British Business Bank’s £300 million investment programme.

In addition to the funding, Dr Cable also announced a £1 million Sector Mentoring Challenge Fund to facilitate experienced business people into businesses; and £10 million synthetic biology start up fund from the Biotechnology and Biological Science Research Council (BBSRC) to help entrepreneurial scientists working in synthetic biology get their business off the ground.

Business Secretary Vince Cable said: “Today we have set out a comprehensive package of measures that will address the concerns of small firms.

“The first investments from the British Business Bank’s investment programme will provide choice to smaller businesses looking to secure vital finance to help invest.

“Alongside cutting red tape and increasing the take up of business rate relief, Government has already made significant progress in improving the business outlook for small firms and entrepreneurs.”

The measures will be supported with a new website ‘Great Business’which will provide access to the likes of the Manufacturing Advisory Service, National Apprenticeship Service, and the Growth Accelerator programme.

The British Business Bank programme is currently run directly by the Department for Business, Innovation and Skills and is not authorised or regulated by the Financial Conduct Authority or the Prudential Regulation Authority.

Once Government has received European Commission State aid clearance, which is expected in 2014, the programme will be transferred in its entirety to the British Business Bank plc, which will operate as a Government-owned financial institution.

This was posted in Bdaily's Members' News section by Tom Keighley .