皇冠体育app

• 拢85 million of current Investment Programme commitments will support 拢575 million of lending capacity
• 拢87 million predecessor scheme has already supported 拢197 million of lending
• the 10 commitments to date across the combined Investment Programmes will support over 拢800 million of lending

皇冠体育app programme confirmed today (25 February 2014) that it is making a new 拢40 million investment to support further lending to smaller businesses through peer-to-peer lender . This investment will start on 1 March 2014 and is expected to support around 拢450 million of lending over the next 18 months.

This builds on an earlier investment of 拢20 million in Funding Circle in December 2012 through the Business Finance Partnership (BFP), a scheme which led to the current Business Bank Investment Programme. That funding has resulted in 拢130 million being lent to small and medium-sized enterprises (SMEs) through Funding Circle, including:

• Bramley & Gage, a manufacturer of gin and fruit liqueurs, borrowed 拢25,000 from 248 people in the UK including the government, to purchase a new gin still to increase production
• Moo Free Chocolate, a manufacturer of dairy free and gluten free chocolate, borrowed 拢60,000 to purchase machinery and ingredients to increase production
• Kaizen, a luxury furniture manufacturer, borrowed 拢100,000 to expand and fuel growth

Business Secretary Vince Cable said:

皇冠体育app Business Bank is helping to support serious volumes of lending to small and medium sized businesses through new finance providers. Too much business lending is concentrated in the big banks and, if we鈥檙e to have a properly functioning business lending market, they need to be challenged by new banks, peer-to-peer lenders and other alternative providers.

Peter Wilson, Managing Director of the British Business Bank鈥檚 Investment Programme said:

皇冠体育app pace is really starting to build in terms of the momentum of our commitments and the impact that our Investment Programmes are making. 皇冠体育app pipeline of future commitments is strong and we are seeing continuing interest through new applications to the programme.

To date, total commitments made under the current Investment Programme stand at 拢85 million, which together will help to support over 拢550 million of new lending capacity for smaller businesses. 皇冠体育app 拢87 million allocated under the Business Finance Partnership forerunner of the Investment Programme has already supported almost 拢200 million of lending to smaller businesses. A total of 10 alternative lenders have so far been supported through these schemes.

Notes to editors:

About the

1.Under the terms of the Funding Circle agreement, 拢35 million of the British Business Bank investment will be used to fund 10% of the value of each loan that meets Funding Circle鈥檚 risk assessment process and successfully raises the other 90% of the loan from private sector investors. 皇冠体育app British Business Bank element will reduce to 5% of each loan, after the first 拢35 million has been invested.

2.Launched in April 2013, the latest 拢300 million Investment Programme is being kept open for new applications until 31 May 2014, as a result of the strong ongoing interest over the last few months. 皇冠体育app programme is designed to promote diversity of lending supply through supporting a variety of potential finance providers. It has the flexibility to make a broad range of debt and equity investments, including in:

• challenger banks
• debt funds
• supply chain finance and invoice discounting
• asset-backed lenders and leasing
• peer-to-peer lenders and other platforms.

3.Today鈥檚 (25 February 2014) announcement follows the 2 initial Investment Programme commitments announced in November 2013, involving:

• 拢30 million to Praesidian Capital Europe to support a new subordinated debt fund of approximately 拢96 million at first close
• 拢15 million to BMS Finance to support a new fund of 拢30 million at first close to support UK businesses with high growth potential and nearing profitability
• lending under these commitments will commence following legal completion, which is currently in progress

4.皇冠体育app British Business Bank will support economic growth by bringing together public and private sector funds to create more effective and efficient finance markets for smaller and medium-sized UK businesses. It is a key element of the government鈥檚 Industrial Strategy, and its programme is already contributing to making the UK the best place in Europe to start, grow and finance a business.

5.皇冠体育app British Business Bank programme is currently run directly by the Department for Business, Innovation and Skills and is not authorised or regulated by the Financial Conduct Authority or the Prudential Regulation Authority. British Business Bank plc will operate as a government-owned financial institution once HM Government has received European Commission state aid clearance, which is expected in 2014.

6.皇冠体育app British Business Bank Programme recently published a brief update on its performance and recent developments, which included:

• 拢660 million of total lending and investment supported in 2013, was up 73% versus 2012; of this, 拢218 million was supported in the final quarter of 2013
• 37% of the total lending and investment supported in 2013 went to business in: manufacturing; information and communication; and, professional, technical and scientific activities
• 拢89.3 million of lending was supported through the Business Finance Partnership (BFP) in the final quarter of 2013, which was 拢8 million more than the combined total for BFP lending in the second and third quarters of 2013
• there have been over 100 Investment Programme applications received since it was launched in April 2013, including 29 in January 2014
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About Funding Circle

7. is an online marketplace for business loans, enabling investors to directly lend to small businesses. Businesses borrow between 拢5,000 and 拢1 million, while investors receive an average net return of 5.7% on their money. Since launching in August 2010 Funding Circle has helped businesses borrow more than 拢220 million. Investors include thousands of individuals, the British Business Bank, local councils and Huddersfield University.

8.Under the British Business Bank鈥檚 Business Finance Partnership, 拢20 million was invested to support lending to smaller businesses via the Funding Circle platform. This investment has helped to support almost 2,000 businesses in securing approximately 拢140 million of finance over the last year.

9.皇冠体育app government鈥檚 economic policy objective is to achieve 鈥榮trong, sustainable and balanced growth that is more evenly shared across the country and between industries鈥�. It set 4 ambitions in the 鈥楶lan for Growth鈥�, published at Budget 2011:

• to create the most competitive tax system in the G20
• to make the UK the best place in Europe to start, finance and grow a business
• to encourage investment and exports as a route to a more balanced economy
• to create a more educated workforce that is the most flexible in Europe

Work is underway across government to achieve these ambitions, including progress on more than 250 measures as part of the Growth Review. Developing an Industrial Strategy gives new impetus to this work by providing businesses, investors and the public with more clarity about the long-term direction in which the government wants the economy to travel.