The British Business Bank's Debt Funds programme has had a significant impact on the UK's debt market and finance ecosystem for smaller businesses, as revealed by an independent evaluation.
SQW undertook the evaluation in partnership with Beauhurst, utilising data up to March 2023.
It confirmed the programme's role in the smaller business finance market and its effectiveness in attracting additional private investment.
The report demonstrates that the Debt Funds programme has improved access to debt finance for smaller UK enterprises and raised awareness of alternative finance options.
Research involving investee companies illustrates that the programme has facilitated growth in turnover and employment, contributing to the expansion of these businesses.
In terms of tangible outcomes, Debt Funds-backed finance has enhanced business turnover, allowing companies to scale operations swiftly.
This has translated into an average annual net impact of approximately £750,000 ($1m) per smaller company and £7.5m ($10m) per company for Venture Debt and Prefequity recipients.
The scheme has also been linked to the creation of around 1,400 net new jobs, with the average recipient adding three to five jobs.
While a full assessment of the Debt Funds programme's financial performance is yet to be completed, initial indicators point to robust returns, with a 7.4% IRR from inception to March 2023.
The programme has accumulated £114m in interest and realised £189m in profits, with minimal write-offs.
British Business Bank Funds co-head and managing director Adam Kelly said: “It is very encouraging to see that the British Business Bank’s Debt Funds programme has made a positive impact on the UK debt market and finance ecosystem, improving access to finance, boosting UK smaller businesses and creating c. 1,400 additional jobs at the time of evaluation.
“The evaluation also shows the continued need for the programme in a challenging fundraising market for smaller funds. The British Business Bank will continue to play a key role in this market, further developing the supply and diversity of private debt finance.”
In July 2025, the British Business Bank's Growth Guarantee Scheme reported £2.5bn in lending, with 69% of funds reaching businesses beyond London and the south-east.
"Debt Funds programme of British Business Bank boosts UK market" was originally created and published by Leasing Life, a GlobalData owned brand.
[SRC] https://finance.yahoo.com/news/debt-funds-programme-british-business-135546242.html
