The launch of new schemes of small business lending

The Government is asking for applications to manage £500 million of investment available through the Business Finance Partnership (BFP), a new scheme that aims to ease the flow of credit to small and mid-sized enterprises by diversifying their sources of finance and making them less reliant on banks.
The BFP is part of a £21 billion credit easing programme and so far, seven funds have been shortlisted to potentially receive investment of up to £700 million.

Up to £400 million more will be invested by the Treasury through managed funds that lend directly to mid-sized firms.

The Department for Business, Innovation and Skills will invest up to £100 million through non-traditional channels that lend directly to small businesses.

These could include mezzanine finance funds, supply chain finance schemes and peer-to-peer lenders.

Business Secretary, Vince Cable, comments: “As businesses are continuing to struggle to get credit from their banks, developing alternative lending channels so firms are less reliant on banks is essential.”

Source:
bankingtimes.co.uk