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Capital for Enterprise Fund

Volume 488: debated on Monday 2 March 2009

To ask the Minister of State, Department for Business, Enterprise and Regulatory Reform if he will place in the Library a copy of the business plan for the Capital for Enterprise Fund. (254603)

The Capital for Enterprise Fund is a commercial investment fund which will be governed by a commercial limited partnership agreement between the fund manager and the investors in the fund. What the fund will do will be specified in the partnership agreement, summarised as follows:

The Capital for Enterprise fund will provide £75 million of equity, made up of £50 million Government funds and an additional £25 million from high street banks.

The fund will provide equity and quasi-equity of £250,000 to £2 million for companies under the EU SME definition, that is those with turnover of up to €50 million who have viable business models and growth potential in need of long term capital.

Risk will be shared equally between Government funds and those committed by banks.