The government-owned British Business Bank (BBB 23) has swung to a pre-tax deficit of almost £147 million annually.
The lender for economic development claims that broader economic issues caused a decline in the value of the companies it has invested in.
The bank claims that, “despite the difficult economic environment,” finance agreements of £1.6 billion were made in the year.
British Business Bank (BBB) was established in 2014 to invest in and lend money to smaller UK businesses to assist with their establishment and growth.
The bank said that in the 12 months ending in March, the value of its investments decreased by £146 million, or 5%. This contrasts with a profit of £619m the year before.
The values of technology companies have declined globally in recent months as investors have grown more cautious as a result of rising borrowing rates and sluggish economic growth.
According to Louis Taylor, chief executive officer of the bank, “given the longer-term 10-year horizon for most of our investments, we would expect an overall upward trajectory despite these in-year fluctuations.”
According to British Business Bank (BBB), it has already funded more than 90,000 firms to the tune of £12.4 billion, exceeding its $10.7 billion goal.
The amount does not include the loans it administered for Coronavirus.
The three Covid-19 loan programs and the government’s Future Fund, which together have provided more than £80 billion in financing to nearly 1.7 million firms, are administered by the BBB. New applications are no longer accepted for the schemes.
After investing public funds in organizations like the sex party promoter Killing Kittens and the football team Bolton Wanderers, The Future Fund gained notoriety.
More than half of the £1 billion in loans made through the bank’s Start Up Loans program went to minority- and women-owned small enterprises.
The program intends to assist underrepresented groups who are turned down by traditional lenders to start enterprises, as well as areas outside of London and the south-east of England.
The majority of the finance is provided by lenders other than the ‘big five’ banks in the UK.
What is British Business Bank (bbb 23)
A development bank controlled by the UK government, the British Business Bank was founded in 2014. Supporting and financing small and medium-sized businesses (SMEs) in the UK is its main goal. The bank works via partners including banks, financial institutions, and alternative lenders to provide capital and support for businesses rather than lending directly to them.
The British Business Bank provides a number of important programs and services, including:
- Start-Up Loans: Under this initiative, young startups are given loans and mentoring support.
- Enterprise Finance Guarantee (EFG): This program makes loans to SMEs more accessible for those who might lack the necessary collateral for regular bank loans.
- Angel CoFund: This co-investment fund makes investments in high-growth companies with business angel syndicates.
- The British Business Bank invests in venture capital funds that help start-up and fast-growing companies.
- This fund, known as the Northern Powerhouse Investment Fund (NPIF), lends money to small and medium-sized enterprises in the northern region of England.
- Help to Grow is a program that provides software at a reduced price and management training to SMEs.
- A government-backed initiative called the Future initiative lends money to forward-thinking UK businesses.
- The British Business Bank played a vital role in supporting businesses financially during the COVID-19 epidemic by implementing programs like the coronavirus business interruption loan scheme (CBILS).
It’s important to note that the precise programs and initiatives provided by the British Business Bank may change over time. For the most recent information, it’s always a good idea to visit their official website or get in touch with them directly.
