Deputy Prime Minister Nick Clegg has announced that up to £50 million will be made available for regionally-focused business lenders through the British Business Bank.
Deputy PM Clegg commented on the announcement;
It is generally accepted in the UK that small businesses continue to struggle to raise capital when necessary. The Financial Conduct Authority stated earlier this year that the banking sector does not meet the needs of small business. The challenges increase outside of London. According to there report, nationally, more than half of small businesses said availability of credit was ‘poor’ or ‘very poor’. The UK established the British Business Bank to tackle this dilemma. The British Business Bank has partnered with multiple peer to peer lending platforms to assist in creating access to capital for small companies.
With an urgent need for local lenders to be given the capital to lend more to local businesses, the Deputy Prime Minister is today announcing the availability of up to £50 million for regionally-focused business lenders through the British Business Bank. The government statement said this initiative will “ensure big banks aren’t monopolising lending and will help regional small businesses grow by funneling more finance through local commercial lenders”.
Through private sector matching funds the total amount available for SMEs is expected to top $100 million. The statement claimed that during the past year (October 2013-September 2014), the British Business Bank has already facilitated finance for over 21,000 small businesses across the UK, to the value of nearly £1.5 billion.
