A new investment fund for small businesses could be announced soon, according to widely-publicised reports.

At least four major high street banks will contribute to the fund, which could be worth up to £250 million.

The fund could be part of a report from the British Bankers Association, which it has said will be “comprehensive and will contain important and wide-ranging recommendations”.

It is expected to replace 3i, an investment fund established for small businesses in 1945.

The government’s banking task force was established three months ago to address funding problems faced by small businesses.

Earlier this week, the Scottish first minister Alex Salmond wrote an open letter to Vince Cable, which highlighted the situation faced by small businesses in Scotland.

Mr Salmond said that the current business environment made it necessary to “promote growth, investment and employment and not to take unnecessary risks with the recovery”.

Posted by Christopher Evans


Published on: October 6, 2010