In 2024/25, the British Business Bank financed a staggering £6.8 billion to Small and Medium Enterprises (SMEs).
British Business Bank Exceeds Targets and Boosts UK Economy
The British Business Bank has made a significant impact on the UK economy in the past year, surpassing its targets for debt and guarantee commitments while supporting over 24,000 businesses and sustaining around 267,000 existing jobs.
The Bank made £385.8m of debt commitments, exceeding its target of £382.5m, and made just over £2bn of guarantee commitments, surpassing its target of £1.8bn. These commitments have been instrumental in providing access to finance for smaller businesses, helping them invest and grow, and contributing to job creation and regional economic development.
One of the Bank's key initiatives, the Growth Guarantee Scheme, reached a lending milestone of £2.5 billion. This scheme has been particularly successful in promoting economic growth in regional areas, with 69% of the lending going to businesses outside London and the South East. The scheme has facilitated lending across numerous UK regions, including over £200 million each in the North West, West Midlands, East of England, and Yorkshire & The Humber.
The Growth Guarantee Scheme supports smaller businesses by providing access to finance products like term loans, overdrafts, asset finance, invoice finance, and asset-based lending, with facility sizes up to £2 million. This access to finance has been crucial for businesses in various sectors, with the Bank supporting £368 million in manufacturing, £366 million in wholesale and retail, and £234 million in construction.
Louis Taylor, chief executive of the British Business Bank, stated that the Bank undertook a significant reshaping of its organization to prepare for an expanded mandate and long-term ambitions. He also emphasised that having a permanent economic development bank with a consistent risk appetite, underpinning the UK venture and growth market through its cycles, is a powerful and very positive development.
The Bank's activities are expected to contribute £8bn of gross value added over the lifetime of the finance. Moreover, the Bank supported 24,000 businesses that had never received Bank-supported funding before, indicating its role in promoting access to finance for a diverse range of businesses.
In conclusion, the British Business Bank has played a vital role in boosting investment and growth beyond London, contributing to the UK's economic prosperity. The Bank's achievements in the 2024/25 financial year have been significant in driving economic growth and innovation in the UK's Nations and regions.
The British Business Bank's debt and guarantee commitments, primarily aimed at smaller businesses, have been essential for investment and growth across the UK, fueling job creation and regional economic development. By exceeding its targets and providing access to various finance products, the Bank has supported businesses in sectors such as manufacturing, wholesale, retail, and construction, indicating its crucial role in fostering business growth nationwide.
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