The British Business Bank will replace the primary function of the European Investment Fund (EIF) once the UK has left the EU, it has been revealed.
Announcing more than £200 million in additional funding for British businesses, the Exchequer Secretary Robert Jenrick said the move would ensure that the UK continues to be the “best place in the world to start and grow a business”.
The funding is intended to directly replace the investment British businesses currently receive from the EU. According to the most recent figures, the EIF made €685.2 million (£592 million) available for investing in UK small businesses in 2017 alone.
However, According to reports, a year of Brexit turbulence and upsets caused the EIF to cut deals with UK venture capital and private equity groups by more than two-thirds in 2018.
Commenting on today’s decision to bolster the British Business Bank, CEO Keith Morgan said the funds will be used to back businesses that are starting out and scaling up.
“We welcome HM Treasury’s confirmation today that this allocation of £200 million is now available to increase provision of much-needed scale-up capital for innovative businesses across the UK,” He said.
“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 British Business Bank added that, to date, it has supported over 82,000 smaller businesses with more than £5.9 billion in funding.
To find out more about the British Business Bank and what they do, click here.
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