Rowlands Review leads to SMEfund
PRIME Minister Gordon Brown yesterday backed the launch of a new public fund to provide debt and equity to small and medium sized businesses trapped in a “gap for finance.”
Brown said the Growth Capital Fund follows the review headed by Chris Rowlands, a former executive at 3i, who said that due to structural market failures and global financial turmoil a “permanent gap exists for firms looking for between £2m-£10m in growth capital”.
Rowlands said that neither bank lending nor equity investors are likely to fill the gap in the foreseeable future.
The CBI?welcomed the proposal and said: “These firms will help pull the UK out of recession, and generate jobs and investment if they can access the vital capital they need to grow.”