- £300 million will be invested alongside private investors to address long-standing gaps in the SME finance market. This money is the first deployment from the £1 billion of new capital allocated to the business bank in the 2012 Autumn Statement. It will build on the success of the Business Finance Partnership to leverage at least the same amount in private sector investment.
- The focus is on promoting greater diversity of debt finance available toSMEs by encouraging the growth of smaller lenders and new entrants in the market. Investments will be made via new and existing lending channels on a commercial basis.
- New research by the National Institute of Economic and Social Research (NIESR) highlights that SMEs have been disproportionately affected in their ability to access finance as a result of the contraction in bank lending since 2008.
The CBI follows a well trodden path in suggesting that the the key to success is awareness. I’ve heard that too often. If these were such great finance offers, businesses would know about them, wouldn’t they? Word of mouth and all that. Businesses I’ve spoken to seem to be disappointed that so many of these schemes have done little except reproduce what is already available – what is so special about offers from this new launch?