The British Business Bank (BBB) has marked its 10-year anniversary by announcing that it has delivered more than £32bn in combined public and private sector funding.
In a new report, the BBB said that since its inception in 2014 it has supported 209,000 smaller businesses which are expected to create 250,000 additional jobs and sustain almost 2.3 million existing positions.
The smaller businesses supported by the Bank are projected to generate £97bn in additional turnover and around £43bn in additional economic output over the lifetime of their finance.
Furthermore, 84 per cent of the businesses that have been supported by the BBB are located outside London.
The Bank also revealed that it has seen a 4.2 per cent annual 10-year combined commercial, mandated and service arm adjusted rate of return.
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“Over the past decade, the BBB has empowered smaller businesses to thrive, creating opportunities and driving growth across the UK,” said Business Secretary Jonathan Reynolds.
“They’ve supported more than two million jobs, created £97bn in additional turnover, and delivered £32bn in funding – its impact is clear.
“As part of our Plan for Change, this government remains committed to building a high-growth economy, and the Bank’s success shows how public investment and private ambition can deliver lasting value for the nation.
“The work of the BBB is essential in our mission to grow the economy and improving living standards by supporting small businesses to flourish.”
The Bank is the UK’s largest domestic investor in UK venture and venture growth capital.
Over the past decade, it has leveraged more than £4 of private sector investment and lending guaranteed for every £1 of public funding deployed, demonstrating its ability to act as a catalyst for private funding.
Its network of over 200 delivery partners includes banks, fintech providers, and venture capital funds.
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The firm is now in the process of establishing the British Growth Partnership, subject to regulatory approval, which aims to raise hundreds of millions of pounds to invest in some of the highest potential opportunities in the Bank’s venture capital pipeline.
“The [report] highlights the transformative role the BBB has played in driving economic growth and shaping the financial landscape for smaller businesses across the UK,” said Louis Taylor, chief executive of the BBB.
“From improving access to finance across the UK’s nations and regions to backing innovation and championing sustainable growth, we are proud of the impact we’ve achieved over the past decade. Looking ahead, we remain committed to supporting smaller businesses, unlocking private sector investment, and helping the UK meet its economic goals.
“The catalytic impact of the BBB and impressive track record crowding in private funding will become even more crucial as we establish the British Growth Partnership, subject to regulatory approval, unlocking the huge potential of UK pension funds and other institutional investors in venture capital funds and the UK’s innovative businesses.”
