The British Business Bank is being set up as an economic development bank to create more effective and efficient finance markets for smaller businesses in the UK. It is a key element of the Government’s Industrial Strategy, and we are already contributing to making the UK the best place in Europe to start, grow and finance a business. £1 billion of new funding will help to expand existing schemes, and create new ways to unlock finance for smaller businesses. We are also taking over the management of £2.9 billion of existing commitments which help smaller businesses. We are bringing together expertise and budgets to support economic growth by improving the UK’s business finance markets. We will do this by providing Government funding and targeted guarantees to encourage more private sector lending and investment. Our focus is on fixing imperfections in the market. The sort of problems we deal with include a lack of diversity and quantity of finance, and low awareness in the market of what is available.
We expect to unlock up to £10bn of extra funding in the next 5 years
Our approach is evidence-based, using a rolling programme of quality research, and focuses tightly on problem areas rather than distorting markets which function well. We maximise our impact and safeguard taxpayers’ money by applying our commercial expertise and applying robust corporate governance. There are examples of some of the smaller businesses who have had finance unlocked by our schemes on our case studies page.