Business bank to be based in Sheffield

Published 2nd December 2013 at 9:44am

The government has revealed plans to set up its new British Business Bank at Foundry House in Sheffield in a move that will create about 100 jobs. It has also pledged to invest an extra £250m into the bank on top of the £1bn it committed last year.

The announcement will be officially made by Deputy Prime Minister Nick Clegg and business secretary Vince Cable later today (2 December 2013).

The money will support a range of new innovative interventions including capital support for new market entrants, later stage venture capital and asset-based finance.

Clegg said: “Small businesses are working hard to fuel our recovery and help us build a stronger economy.

“I am determined that we do all we can to help companies that have struggled to get the investment they need. Investment that means they can employ those extra people, take on that new order, and buy new equipment.

“The British Business Bank will give smaller companies who have struggled to get loans in the past easier access to millions of pounds of cash to grow and create more jobs.”

The British Business Bank was formally launched in October and now has £1.25bn of capital for new programmes to support small companies. It will become fully operational in autumn 2014, once EC State Aid approval has been cleared.

Cable said the bank would create more competition in the banking sector and give access to finance to businesses which are currently struggling with high street banks.

He added: “Since I announced this initiative more than 10,000 businesses have already been helped and this new money will help it do more of that.

“The British Business Bank is fixing a big long term problem in our banking system and it is set to unlock up to £10bn of finance over the next five years to help small and medium sized businesses grow.”

Original article from Yorkshire Insider.