£23m boost for UK businesses with Bank Referral Scheme

British businesses have received £23m to help them expand and create new jobs due to government support.

The Bank Referral Scheme is administered by the British Business Bank on behalf of HM Treasury. According to figures published today, it has helped over 880 businesses to access investment they need to grow in the last 12 months, with funding through the scheme increasing by a third to £23m.

Securing credit to grow is often a barrier for SMEs, but since the creation of the Bank Referral Scheme (BRS) in 2016, hundreds of small and medium-sized businesses have been able to access finance after being turned down by their bank.

The scheme, which has now raised £56m for businesses across the UK, was created after evidence suggested SMEs rarely sought other options for financing after being turned down.

“Businesses which have loan applications turned down are now automatically offered the chance to be referred to three government designated finance models.

John Glen, economic secretary to the Treasury, said: “It’s great to see businesses across the UK getting the investment they need to protect jobs and grow. By matching small businesses with alternative finance providers, this important scheme has delivered £23m in funding since July 2019.”