Business Secretary Vince Cable has announced the first funding allocations from the new British Business Bank, totalling £45m.
Allocations were made to Praesidian Capital Europe and BMS Finance of £30m and £15m respectively. Between them they will provide £125m of debt finance to small businesses through new funds from early 2014.
The funds, part of a package of measures to boost small business growth, marked the start of the £300m British Business Bank Investment Programme.
Cable said: “We have set out a comprehensive package of measures that will address the concerns of small firms.
“The first investments from the British Business Bank’s investment programme will provide choice to smaller businesses looking to secure vital finance to help invest.
“Alongside cutting red tape and increasing the take up of business rate relief, government has already made significant progress in improving the business outlook for small firms and entrepreneurs.”
Ewan Stradling, CEO of BMS Finance, said: “Since our management buyout last year, BMS has greatly expanded its business.
“This funding will allow BMS to significantly expand our lending capacity to high growth SMEs. Our successful application is a vote of confidence in our business model and the opportunities available in lending to UK-based SMEs.”
A new £1m Sector Mentoring Challenge Fund, which will help firms to benefit from support and advice from experienced businesspeople has also been launched as part of Cable’s measures to support UK SMEs.
The British Business Bank programme is run directly by the Department for Business, Innovation and Skills (BIS), and is not authorised or regulated by the Financial Conduct Authority or the Prudential Regulation Authority.