SMEs set to benefit from surprise £70m government grant

British small businesses will soon get an unexpected £70 million grant thanks to a new project from the government set to increase how available loans can be for companies. Three new companies will now lend to this government funding offer. They are URICA, Market Invoice and Beechbrook Capital. These will offer alternatives to usual bank lending processes for small businesses, and each lending business has accepted to bringing in additional money from the private sector, capitalists interested in this type of lending.

These will make the bulk of the £70 million fund that Vince Cable, the Business Secretary, agreed to provide. He said that a lack of access to funds often leads to many small businesses unable to grow and meet demands, hiring new workers or investing in new equipment or inventory.

Cable hopes to help SMEs to handle their situation, including having more accesses to banks and loans. £30 million of this fund will be for non-traditional lending processes for businesses who have innovative solutions to common day problems. The BFP in particular will provide an additional £100 million fund to diversify these sources of finance.