What Is the British Business Bank and Can It Help Me?
George Wilks
Commercial Lead · Oct 6, 2024 · 7 min read
The British Business Bank (BBB) is a government-owned economic development bank that makes finance more accessible and affordable for UK smaller businesses. It does not lend directly to businesses; instead it works through accredited partners, lenders, and fund managers to channel funding into the market.
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What the British Business Bank does
The BBB guarantees loans made by participating lenders, reducing the lender's risk and enabling them to lend to businesses they would not otherwise fund. It invests in equity funds that provide growth capital to SMEs. It administers direct lending programmes (such as Start Up Loans) through licensed delivery partners. It publishes research and data on the UK SME finance market to support better policy and business decisions.
The BBB's programmes have collectively supported hundreds of billions of pounds of finance to UK small businesses. Its guarantee schemes (most recently the Recovery Loan Scheme during Covid, now the Growth Guarantee Scheme) allow participating lenders to offer loans with more flexible criteria than their standard products because the government underwrites part of the risk.
How to access British Business Bank programmes
You do not apply directly to the British Business Bank. You apply through an accredited lender or delivery partner that participates in its programmes. The Start Up Loan scheme is available through licensed delivery partners listed on the BBB website. The Growth Guarantee Scheme (successor to the Recovery Loan Scheme) is available through accredited mainstream and specialist lenders.
Spark Finance works with lenders accredited under various BBB programmes. If a BBB-backed facility is appropriate for your business, we will identify it as part of our market comparison. For Start Up Loans specifically, the BBB website lists all licensed delivery partners.
"The British Business Bank does not replace the private lending market. It supplements it for businesses that the market would otherwise underserve, and it does so at scale."
- George Wilks, Commercial Lead
Frequently Asked Questions
Does the British Business Bank lend money directly to businesses?
No. The BBB operates through accredited partners. You access its programmes through participating lenders, brokers, and delivery partners, not directly from the BBB itself.
What is the Growth Guarantee Scheme?
The Growth Guarantee Scheme is a BBB programme that enables accredited lenders to offer loans, asset finance, and invoice finance facilities with a government guarantee covering part of the lender's risk. This allows lenders to fund businesses they might otherwise decline. Spark Finance can identify participating lenders on our panel.
The bottom line
If you are interested in BBB-backed programmes or any other form of UK business finance, start at apply.sparkfinance.co.uk and our team will identify the most suitable options.
Check your eligibilityAbout the author
George Wilks
Commercial Lead
George leads commercial relationships at Spark Finance, specialising in property-backed finance including bridging loans, development finance, and commercial mortgages. He works with investors, developers, and owner-occupiers to structure short and long-term property finance.
