The Government-owned British Business Bank has said UK taxpayers will feel the long-term benefits of plugging billions of pounds into small firms after revealing it swung to a loss of more than £147 million last year.
The bank, which lends money to and buys stakes in smaller UK businesses to help them start and grow, made £1.6 billion worth of funding agreements during the latest year. “These are long-term investments and we are confident that over time, when we actually realise these investments, they will yield profitable growth for us but also real social benefit for the economy.”The bank said it had been affected by falls in the market valuations of companies, especially in the technology sector which saw valuations cut after the pandemic.
The bank’s Start Up Loans programme recently reached a milestone of £1 billion in lending, with more than half the funding going to small businesses run by women and ethnic minorities.