Government launches business fund

Encouraging the growth and development of enterprising businesses is a key part of the Government’s plans for re-balancing the economy and spurring recovery.

To help improve business access to the sort of finance needed to get new products and services off the ground, the Government has launched its new Business Growth Fund (BGF). The fund has been set up to help SMEs with an annual turnover of between £10 million and £100 million. It has available funds of up to £2.5 billion, and is backed by a number of leading banks.

The BGF will invest approximately between £2 million and £10 million per business in return for a minimum 10 per cent equity stake and a seat on the board for a BGF director. It is designed to offer long-term equity investment for growing enterprises which are struggling to secure access to sources of capital.

Business Secretary, Vince Cable said: “The Business Growth Fund is ready to make substantial equity investments into ambitious mid-cap British companies who are set to create the business success stories of the coming years.”

More details on the BGF can be found at http://www.businessgrowthfund.co.uk/

Has your business come up with a great new idea but is struggling to raise the funds to finance it? We just might be able to guide you towards sourcing the right kind of backing.