Small business will get nothing from new equity fund

A prominent organisation that specialises in small businesses has spoken out about a new equity fund intended for medium sized businesses. They have said that the equity, worth £2.5b is only for those businesses with a turnover of between £10-£100m will not bring anything into the small business sector which is desperate need of extra funding, and is a crucial part of the recovery of the economy in the UK.

Senior policy advisor for the forum for Private Businesses, Alex Jackman, has said that the fund was aiming to bridge the gap in the funding of ‘high growth’ companies. These were identified in 2009 in the Rowlands Review, and while this was a long overdue and welcome step forward, it was overshadowing the real problem.

This was the lack of affordable loans that banks are making available to established small businesses as well as those trying to start up. As these weren’t eligible to get anything from the fund there was a real danger that small businesses were being left out in the cold and this is turn would be disastrous for the UK economy. The Forum wants better access to affordable finance as part of its campaign to get Britain trading.