A new public company, UK Finance for Growth Limited, has been established to manage the Department for Business’ small and medium-sized enterprise (SMEs) finance schemes and oversee all publicly funded venture capital schemes.
How much investment will UKFG manage?
In total, UKFG will manage around £3.5 billion, including £1.1 billion of Government-committed money. It will also have oversight of investment funds totalling £858 million (comprising RDA legacy funds, Carbon Trusts Investments and the Joint European Resources for Micro to Medium Enterprises Initiative).
The funds will provide finance and investment for SMEs ranging from £25,000 to £10 million. Funding will be provided in the form of debt, equity or mezzanine funding. It will also guarantee commercial loans under the Small Firms Loan Guarantee and Enterprise Finance Guarantee.
What roles will UKFG perform?
UK Finance for Growth will bring together the BIS portfolio of SMEs finance schemes already managed by Capital for Enterprise Limited (CfEL), including HMG’s interest in the new Growth Capital Fund. CfEL will form the core of UKFG.
UKFG will be able to provide a range of services to design schemes for Government organisations and to monitor their performance. Government organisations proposing new financial interventions for SMEs will have to consult UKFG for advice.
UKFG will also provide oversight for all publicly funded venture capital schemes, providing a clearer picture of SME finance initiatives. UKFG’s wider responsibilities will enable it to design and deliver better funds and improve coverage for regions. Where possible, it will streamline the range of finance products for small businesses.
In the long term, UKFG will raise capital from institutional investors, providing a credible channel for those institutions to invest in UK SMEs.
When will UKFG be established?
UK Finance for Growth Limited is an established company. Further work is underway to build and develop the organisation. Most funds managed by UKFG are already established and providing capital. Transition to the new body will not mean a pause in funding.
SME's seeking funding should refer to the Capital for Enterprise Limited (CfEL) website at: www.capitalforenterprise.gov.uk
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