Set up by Vince Cable (pictured), the business secretary, in September 2012 with £1bn, the BBB worked across 80 finance providers to lend to SMEs who may be struggling to access finance from traditional sources following the credit crunch.
The bank used business angels, venture capital funds and trade credit providers, as well as the traditional banks, to fund start-ups and growing UK businesses.
At its launch, £300m was ring-fenced for the investment programme. The British Business Bank said that more than £782m of new lending and investment in UK small firms had been generated by its programmes; double the level of activity generated by government finance programmes to small business in 2012/13.
Examples of investments over the last year include: £7.8m committed to the Dawn Capital II venture capital fund; £25m to the Episode 1 Venture Capital fund; £30m committed to Praesidian Capital Europe debt fund; £15m in BMS finance, £40m invested through Funding Circle and £20m in the Sussex Place Venture capital fund.
In addition to this, the British Business Bank also funds the Start-Up Loans programme, which has lent £70m to new entrepreneurs in the UK.
Mr Cable said the bank would be aiming to complete state aid negotiations with the European Commission later this year.
