Posts tagged Secretary of State for Business Innovation and Skills
Small and medium sized businesses (SMEs) struggling to access finance received a boost today as the Business Secretary Vince Cable launched the first phase of the new business bank set to address long-standing gaps in the SME finance market.
The multi-million investment is the first deployment from the £1 billion of new capital allocated to the business bank in the 2012 Autumn Statement. It will build on the success of the Business Finance Partnership to leverage at least the same amount in private sector investment.
The focus is on promoting greater diversity of debt finance available to SMEs by encouraging the growth of smaller lenders and new entrants in the market. Investments will be made via new and existing lending channels on a commercial basis.
New research by the National Institute of Economic and Social Research (NIESR) highlights that SMEs have been disproportionately affected in their ability to access finance as a result of the contraction in bank lending since 2008.
Business Secretary Vince Cable said: “Small and medium sized businesses are still telling me that access to finance is their number one problem, preventing them from investing and growing. That’s why through the business bank we are developing a range of measures to provide businesses with the power to choose the type of finance that suits them.
“Today’s £300 million boost shows we are serious about increasing competition and diversity in the business lending market. 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.”
Business Secretary Vince Cable has launched a new £3 million funding scheme for East Anglia that will kick-start growth for small firms in the trades.
The New Anglia Local Enterprise Partnership is specifically aimed at helping firms that want to grow but have been held back by a lack of finance.
The £3 million fund will provide cash grants to businesses looking to expand their operations
and create new jobs. Funding for the scheme has come from the government’s Regional Growth Fund.
The fund will provide grants of up to 20%, between £25,000 and £100,000, to business that have a shortfall in their investment plan and are able to create at least one job for every £10,000 provided by the fund.
The Business Secretary launched the fund at Redpack in Norwich, a company which hopes to benefit from the new fund and expand its existing operations in the city.
Business Secretary Vince Cable said: “A lack of finance is one of the biggest barriers facing firms that want to grow. The government is already taking big steps to help companies bridge that gap and now, thanks to this new fund, businesses across East Anglia will get that helping hand they need.
“Through programmes like the New Anglia ‘Growing Business Fund’, the government’s Regional Growth Fund has supported around 1,200 small and medium sized companies across the country, helping them create jobs, increase skills and grow their business.”
What is your reaction to the new funding scheme for East Anglia that will kick-start growth for small businesses and boost the trades? Share your thoughts by commenting here or raise your voice on our Facebook and Twitter pages.
As part of the Regional Growth Fund, Deputy Prime Minister Nick Clegg has announced a £350 million cash pot that will create new jobs and boost the trades.
The Regional Growth Fund is a £2.6 billion fund operating across England from 2011 to 2016. It supports projects and programmes that lever private sector investment to create economic growth and sustainable employment.
The first three rounds will leverage over £13 billion of private sector investment and create or safeguard over 500,000 jobs.
Deputy Prime Minister Nick Clegg said: “The Regional Growth Fund is already proving a shrewd investment by providing a welcome boost to jobs and growth across the country, with thousands of jobs created, businesses expanding into new markets and manufacturing new products. With this next round of funding, I would urge England’s budding businesses to produce top quality bids to access the money that can help them grow.
“There’ll be stiff competition, and we can only invest in those projects that will lead to sustainable jobs and the best value for money.
“Boosting jobs and growth is our number one priority for Britain right now. That is why I am so pleased to be opening a fourth round of the Regional Growth Fund which supports growth across a range of industries.”
Business Secretary Vince Cable said: “The additional £350 million for the Regional Growth Fund is a big boost for those parts of the country facing structural problems.
“The fund has already supported a variety of industries – from motor vehicles to life sciences. This goes hand in hand with our industrial strategy.
“But it’s not just about big industry and household names. To date we have supported over a thousand SMEs through Regional Growth Fund programmes which is giving small business the impetus to expand, employ more staff or start exporting.
“This is the Government’s commitment to growth in action to encourage investment and lead to a more balanced economy.”
What is your reaction to the new funding announced by the Deputy Prime Minister Nick Clegg that will create new jobs and boost the trades? Share your thoughts by commenting here or raising your voice on our Facebook and Twitter pages.