British Business Bank to replace European funding function

More than £200 million in funding has been put aside for British businesses as the UK prepares to leave the EU.

Announcing the move, the Exchequer Secretary, Robert Jenrick, said the British Business Bank will provide funds through its venture capital and growth finance funding partners.

The funding will be made available in place of the European Investment Fund (EIF), which will cease funding UK businesses once we have left the European Union.

The EIF currently provides finance to small and medium-sized enterprises (SMEs) who foster EU objectives, such as in the fields of entrepreneurship, growth, innovation, research and development, employment and regional development.

However, the British Business Bank will replace this function, ensuring that the UK is the “best place in the world to start and grow a business”.

“We welcome HM Treasury’s confirmation today that this allocation of £200 million is now available to increase the provision of much-needed scale-up capital for innovative businesses across the UK,” said British Business Bank CEO, Keith Morgan.

“We look forward to putting the funding to good use through our delivery partners to enable such businesses to get the funding they need to grow and prosper.”

The Exchequer Secretary to the Treasury, Robert Jenrick, added: “The UK is creating more start-ups and attracting more venture capital funding than any other European country, but we want to do more to ensure our small businesses and entrepreneurs can thrive.

“That’s why we are injecting a further £200 million into the British Business Bank, specifically to back businesses that are starting out and scaling up.”

To date, the British Business Bank has supported 82,000 small businesses with more than £5.9 billion of funding.

For more information about the British Business Bank, please click here.

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Posted in Business.