The Business Secretary Vince Cable today revealed plans for the new Government Business Bank, which will offer £3.9 billion in lending to small businesses.
Cable said £300 million of this investment will be committed by the end of the current financial year, with a new company set up in 2014 to house the bank’s ongoing programme.
The Business Bank scheme was first announced to the public in September last year, but no solid plans had been revealed until today. The Business Bank was brought back into the public eye during yesterday’s Budget announcement by George Osborne.
In a document announcing the plans, the Business Secretary said: “This institution will bring together £1 billion of new Government capital and £2.9 billion of existing capital which will work alongside private sector contributions with the potential to be enhanced by guarantees.”
“Inadequate access to finance for small and medium sized enterprises is one of the biggest risks to economic recovery. We need bold action to fix what has always been a weakness of the UK economy, and since the financial crisis has become an urgent problem.”