Small businesses struggling to access finance were given a boost this week with the launch of the first phase of the new business bank by business secretary Vince Cable.
A total of £300 million will be invested alongside private investors to address gaps in the SME finance market. This money is the first deployment from the £1 billion of capital allocated to the business bank in the 2012 Autumn Statement.
Head of policy at the Forum of Private Business, Alex Jackman, said: 'There's no doubt the money is desperately needed in the economy right now, so we urge the government to get the cash out to where it's needed most, by working with organisations to ensure bids are successful. We certainly don't want to be seeing any of this money sitting untouched come February next year.'
He continued: 'We must also remember that the New Business Bank won't be entirely new lending, it will consolidate existing schemes, but we welcome this early new investment nonetheless. There's a pressing need to target those businesses that have viable propositions but to which the banks won't lend for oblique credit scoring reasons.'
