In addition, the Government will also help businesses raise funds from non-bank sources by making available £1 billion through a Business Finance Partnership, to invest in mid-sized businesses and SMEs in the UK. This will initially focus on co-investment with the private sector through loan funds. The Government will also consider options for investing through other non-bank lending channels, and welcomes proposals.
The Government is now engaging with relevant stakeholders on the Business Finance Partnership, and has set out further details in December;
The Government has now also published a ‘Request for Proposals’, which invites fund managers to make proposals to manage the Government’s investment in loan funds. This is available here:
The deadline for this tranche of proposals is 20th February 2012, and the Government intends to set out the managers with which it intends to invest in spring. However, it is expected that further tranches of proposals will be requested later in 2012. Any enquires about the Business Finance Partnership can be directed to email@example.com.