British Business Bank surpasses £3bn lending mark to small businesses
British Business Bank, headquartered in Sheffield, has surpassed the £3bn lending milestone to smaller businesses in the UK.
The British Business Bank has supported smaller businesses with these loans through its Enterprise Finance Guarantee (EFG) programme.
EFG enables lenders to make loans of between £1,000 and £1.2m for smaller businesses which would have been, or already have been, turned down for a loan or other form of debt finance because they are not able to provide security for the loan.
Launched in January 2009, the programme provides its accredited lenders with a Government-backed guarantee for 75% of the loan value.
EFG has now provided over 28,300 business loans, at an average value of around £105k.
Margot James, the Small Business Minister, said: “Building an economy that works for all is an important part of our Industrial Strategy, which is creating the conditions for businesses to start up and grow right across the country.
“Today’s £3bn lending milestone shows just how much Government support is available to help ensure small businesses get the access to finance they need to succeed.”
Reinald de Monchy, British Business Bank managing director, guarantee & wholesale solutions, added: “In the UK, over 28,000 loans with a total value of £3bn, have been made to smaller business in sectors as diverse as retail to construction, the arts to support services.
“The Enterprise Finance Guarantee is an important option for smaller businesses who need access to finance to grow, but struggle to meet the lender’s normal security requirements. £3bn in lending is a major milestone for the programme, making a real difference to the many thousands of businesses it has supported.”
Mike Cherry, Federation of Small Businesses (FSB) national chairman, concluded: “This milestone is testament to the fantastic work that the British Business Bank does right across the UK.
“The Bank facilitates vital access to finance for thousands of small firms, particularly in areas of the country where investment is harder to secure.
“The £3 billion of lending backed by the enterprise finance guarantee is a critical lifeline for our small business community – we urge lenders to embrace and promote the initiative.”
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