Boost for small firms with new Government bank set for Sheffield

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Sheffield has been charge with kickstarting the British economy – with a new business bank to be based in the city.

The government today revealed the new British Business Bank would be located in the city, creating 20 to 30 jobs.

Deputy Prime Minister Nick Clegg, Liberal Democrat MP for Sheffield Hallam, said: “I’m proud the bank will be based in Sheffield.

“It’s a huge vote in confidence for our city and demonstrates the excellent business skills located here.

“But this isn’t just great news for Sheffield, it’s great news for small businesses and the millions of people who work in them across the UK.

“If the banks aren’t lending enough, businesses can’t grow and our recovery slows down.

“This bank ensures they have a range of options for investment – making it easier for businesses in Sheffield and across the UK to expand, create new jobs and help rebuild our economy.”

The bank is being set up as a state-backed economic development bank ‘to create more effective and efficient finance markets for smaller businesses in the UK’.

Mr Clegg also confirmed an extra £250 million in funding for the bank, for ‘ new programmes to help Britain’s small businesses grow’.

The money is in addition to £1 billion it has already been allocated.

The money will support both start-up businesses and established firms looking to expand.

Mr Clegg said: “Small businesses are working hard to fuel our recovery and help us build a stronger economy.

“I am determined we do all we can to help companies that have struggled to get the investment they need – investment that means they can employ those extra people, take on that new order, and buy new equipment.

“The bank will give smaller companies who have struggled to get loans in the past easier access to millions of pounds of cash to grow and create more jobs.”

The bank, already operating in an interim form, will become fully operational in autumn 2014, once European State Aid approval has been cleared.