SMEs urged to apply for business bank funding

The finance will be matched by private sector investment, said business secretary Vince Cable, and is the first deployment of the £1bn of capital allocated to the business bank in the 2012 autumn statement. Although the bank will not be fully operational until 2014, the business secretary says access to finance is such a critical issue for SMEs that this first phase is needed now: "Establishing a lasting business bank institution is a long-term project, but getting this money reaching SMEs as soon as possible is the first step," he said. The first transactions are expected to be made in autumn 2013. Applications can be made until 28 February 2014, but businesses are urged to submit an expression of interest by midday on 22 May 2013. Proposals will be considered for either managed investments – investing alongside private sector investors into managed lending funds, or other managed lending vehicles, for direct onward lending to SMEs – or direct capital investments. The government will provide up to 50% of the total investment on the same terms as private sector investors. Click the link below for proposal information and guidance.