The British Business Bank is to provide an additional £200 million in loans for innovative companies, as the government attempts to address business concerns over access to the European Investment Fund after Brexit.
The government first announced the funding in October 2018, when it promised to release the money if the UK had not agreed a deal with the European Investment Bank on their future relationship by 29 March, the original Brexit date. The £200m will be used to replace funding from the EIF, the EIB’s public-private venture partnership, the government said.
After Brexit, the UK will no longer be a member of the EIB and could be relegated to “third-country” status. UK companies could be badly hit in that scenario, as third countries receive much less support from the bank than full members.