The UK Chancellor for the Exchequer George Osborne has said in the Autumn Statement that British businesses will be able to unlock up to £1bn (1.27bn) of credit through extensions to schemes run by the British Business Banks (BBB).
The BBB will receive £400m from the UK Treasury to supply to UK small and medium enterprises, according to the Autumn Statement from Osborne.
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A statement read: "Ensuring the best firms can get the finance they need to grow is essential for improving productivity. The government is providing a further £400m on to support venture capital through the British Business Bank’s Enterprise Capital Funds programme.
A further £500m will be available to small and medium enterprises though the treasury’s extension of the BBB’s Enterprise Guarantee Fund.
"It is particularly difficult for small businesses to access finance if they lack security or an established track record," said the Treasury.
"Since its creation, the Enterprise Finance Guarantee scheme has facilitated £2.9bn of lending to small businesses. Building on this long-standing success, the Autumn Statement provides further funding for the Enterprise Finance Guarantee scheme, facilitating up to £500 million of new lending in 2015-16.
"Funding for these two major British Business Bank schemes will unlock up to £1 billion of finance for smaller-businesses.’
