Business Bank Investment Programme: Guidance Document for Direct Capital Investments

Explains how to submit a Direct Capital Investment proposal to the Investment Programme for the Business Bank initiative.



Direct Capital Investments are defined as investments, alongside the private sector, either by way of equity or debt injection into lending businesses able to use these commitments to increase their lending activity

This Guidance Document explains the process, investment criteria and terms and conditions for submitting a Direct Capital Investment proposal for the Business Bank Investment Programme. It provides potential applicants with the necessary information to decide whether to submit a proposal to the Programme and to ensure that any proposals submitted are aligned to BIS requirements.


Vince Cable, Secretary of State for Business, has launched a £300 million Investment Programme. This is the first phase of the Business Bank, a new institution that will support finance for small and medium sized UK businesses.

The Investment Programme will invest alongside private investors to address long-standing gaps in the small and medium enterprise (SME) finance market. The Programme promotes greater diversity of debt finance available to SMEs by encouraging the growth of small lenders and new entrants in the market. The Department for Business, Innovation and Skills (BIS) will make investments across a wide range of lending channels and lending products.

This guidance document relates to Direct Capital Investment proposals only. See also the Request for Proposals for Managed Investments.

For further information on Management Investments and Direct Capital Investments, see the Investment Programme to encourage lending to SMEs.

Published 10 April 2013