By Max Clarke

Designed to encourage enterprise, growth and jobs in the private sector and to support regions that are dependent on the public sector, the Regional Growth Fund is a competitively allocated pool of over £2 billion- contributed by the banks- available for SMEs.

Commenting today on the Fund's successes is Secretary of State for Business, Vince Cable:

“The Government’s Regional Growth Fund has already proved extremely popular, so it is very welcome news that the Banks have now committed £1bn in equity funding to work along side the RGF."

In the agreement announced today, the major UK banks committed to investing an additional £1bn in small businesses through the Business Growth Fund over the next three years. Targeted mainly at SMEs outside of London, this fund will work alongside the Government’s Regional Growth Fund.

Commenting, Secretary of State for Business Vince Cable said:

“This is great news for small businesses throughout the country who have been struggling to get the credit they need to grow.

“The Government’s Regional Growth Fund has already proved extremely popular, so it is very welcome news that the Banks have now committed £1bn in equity funding to work along side the RGF.

“As we work to create a more balanced economy it is entirely right that the banks should play their part in helping small businesses throughout the country.”