British Government Offers £200 Mn Funding To Boost Business Bank

The British government has decided to infuse £200 mn funding into the state-run- scheme, which was outlined to offer finance to the small enterprises amid growing concerns over the slowdown in the financing from EU based venture and private equity investors, once Brexit takes place. Earlier Britain uses to be the favourite destination for EU based venture capital firms, which was the largest source of the UK for growth capital in the European continent. In 2018, a subsidiary of European Investment Bank, that facilitate in financing small and medium scale businesses, had ruled out deals with Britain’s venture capital and private equity groups by more than two-thirds following UK's vote to crash out of the EU. In last June, Public Policy Research presented a proposal in front of the British government, which mentioned additional financing for the banks that could solve the fear about a plunge in funding from the European Union, post-Brexit takes place. In 2018, the business banks decided to infuse £150 mn funding to small and medium scale business, through the peer-to-peer lending model. This model has emerged as one of the important sources of finance for lending in recent years as banks in the UK have tightened loaning criteria to a small firm in the wake of growing economic uncertainties post Brexit. The Chief Executive officer of Business bank, Keith Morgan has said that business bank has offered more than £5.9 bn of financing to approximately 82,000 small enterprises. He also added that Quantexa, an artificial intelligence company and Improbable Worlds Ltd, UK based technology company had benefited out of our funding. Business Bank chief also welcomed the move taken by HM Treasury to infuse another £200 mn, which will help to scale-up capital for innovative business across Britain. A member of the conservative party and Exchequer Secretary to the Treasury, Robert Jenrick said that Britain is establishing a higher number of start-ups and getting traction of venture capitalists more than any other European Union member state, but to let our small businesses or start-ups to thrive, we have to do more. He also added that because of this we are infusing further round of £200 mn into British Business Bank to support our firms that are just starting or scaling up the corporation size. The Theresa May's government is trying to encourage publicly owned banks, to invest in early-stage start-ups and to squared-off the adverse impact of Brexit, on the funding for the technology start-ups.