Business Finance Partnership (BFP) - Small Business Tranche
On 31 May 2012 the Department for Business, Innovation and Skills issued a request for proposals for the £100 million Small Business Tranche of the £1.2 billion Business Finance Partnership. Completed proposals must be submitted by midday on 20 July 2012.
Background to the Business Finance Partnership (BFP)
The BFP aims to ease the flow of credit to businesses in the UK by helping to diversify the sources of finance available to them. It is part of a £21 billion programme of credit easing measures announced in Autumn Statement 2011 to support smaller and mid-sized businesses that do not have ready access to capital markets. The Government has already committed to spend £700 million through managed funds that lend directly to mid-sized businesses in the UK.
Secretary of State for Business, Innovation and Skills, Vince Cable, said:
“It’s important we make finance available to small businesses through alternative lending channels to help firms access the support they need to start and grow.
“The Business Finance Partnership will help to develop alternative channels in the mid-term so businesses have access to more diverse finance options, and help to reshape the UK’s finance landscape to better serve the needs of ordinary businesses.”
Small Business Tranche
This new tranche of BFP will focus on co-investing through non-traditional channels, such as peer-to-peer platforms, supply chain finance and mezzanine finance for businesses with a turnover below £75 million.
Provided turnover is below an average of £75 million over three years, the end recipients of the scheme can be any sort of UK small businesses (partnerships, private companies, employee owned) operating anywhere in the UK and in any sector. BIS will invest up to a maximum of 50 per cent in any fund or channel, on fully commercial terms.
How to apply
For guidance on how to apply for funding, see the
Prospective applicants are invited to direct questions in advance of submitting a proposal to BFP@capitalforenterprise.gov.uk.
Questions (posted anonymously) and answers will be available shortly on the Capital for Enterprise (CfEL) website to ensure that all prospective applicants have access to the same information. CfEL will not be able to answer queries by telephone.
Completed proposals should be sent to BFP_bids@capitalforenterprise.gov.uk
Proposals will not be opened until midday 20 July 2012.