Lending bank is open for business

The money will be the first slice of £1bn of new capital, with the aim of boosting smaller firms (SMEs) struggling to access finance. Ministers said they expected the first transactions will take place by the autumn, although applicants were urged to submit an expression of interest by May 22.

Business Secretary Vince Cable, pictured, 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 £300m 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.”

The Government committed £1bn of new capital to the Business Bank last year.