The government is injecting a cool £1 billion into a small and medium UK business (SMB) bank for those struggling to receive capital from other major lenders.
Business secretary Vince Cable will outline the details of the new British Business Bank later today at a Liberal Democrats conference in Brighton, reports bbc.co.uk.
Early details of the project reveal that lending could start within just 18 months. The business bank will be operated by existing lenders and Whitehall hopes that the private sector will also match the initial funding amount.
Fortunately funding won’t be designated to one particular sector. Mr Cable’s speech will in fact suggest that businesses of all kinds – from those in the creative and life-science industries, to those who perhaps want to set up a driver recruitment franchise – will be apply to apply for a slice of funding.
“We need a British business bank with a clean balance sheet and a mandate to expand lending rapidly and we are now going to get it,” he will say according to channel4.com.
“We must get behind successful British-based firms in vehicles, aerospace, life sciences and creative industries and our world-class scientists and universities,” Cable will add.
Full details about where the tax-payer funded scheme is coming from, and how it will operate, are due to be released by chancellor George Osborne in early December’s Autumn Statement.