business growth fund

Most Small Businesses to miss out on banks’ new £2.5 billion Business Growth Fund

The Forum of Private Business is warning that the vast majority of small businesses seeking affordable finance will miss out on a new £2.5 billion equity fund launched today by the UK’s largest banks and the British Bankers’ Association (BBA). The Business Growth Fund allows banks to take stakes of between 10% and 50% in ‘high growth’ businesses with turnovers of between £10 and £100 million in return for investments of £2-10 million. However, according to the latest figures from the Department of Business, Innovation and Skills (BIS), just 5% of SMEs have funding requirements of £1 million or more – with just under a quarter (23%) needing between £10,000 and £24,000. In addition, a paltry 1% of SMEs are seeking equity finance (down from 2% in 2006/07), with the majority choosing not to sa... »