Small businesses struggling to access finance have received a boost this week with Business Secretary Vince Cable launching the first phase of the new business bank.
£300 million will be invested alongside private investors to address gaps in the SME finance market. This is the first deployment from the £1 billion of capital allocated to the business bank in the 2012 Autumn Statement.
Head of policy at the Forum of Private Business, Alex Jackman, responded: “Potentially some of this money can go out the door very quickly if proper proposals are submitted. We urge the government to get the cash out to where it’s needed most, by working with organisations to ensure bids are successful.”
He added: “We must also remember that the New Business Bank won’t be entirely new lending, it will consolidate existing schemes, but we welcome this early new investment nonetheless.