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￡ 5bn 1 high street banks Business Fund will finance only 75 companies a year when it is fully up and running, bankers have revealed.

Funds, due to launch next summer, aims to combat the shortage of capital own funding available for the growth of companies where sales of ￡ 10 m and 100 m ￡.

It was billed as providing a major source of funding equity corporate Britain.

However, Angela Knight, Executive Director of the British Bankers Association told the Committee that his mission was less ambitious business.

"Anticipation at the moment, is that it will be about 75 companies per year, a bit like where 3i used when he was in this area," she says.

"The figure will depend on what businesses want and we are confident that others will be in and commit themselves to checkout."

The Fund will invest between ￡ 2 m and 10 m ￡ in companies in return for a stake equity Institute will be executed by an independent investment company of a London and regional offices.

Banks initially will m ￡ 300-350 million pounds in equity funds more than two ans.Si it proves successful, they invest more, but the total investment. 5bn ￡ 1 is likely to be spread over a period of 7 to 10 years.

First of all, the idea of a fund financed by the Bank has developed by the Labour Government in response to the credit crisis and the current market failure in the provision of finance equity for small businesses.

In March, Chancellor Alistair Darling and then signed Lloyds, Royal Bank of Scotland and Santander Clydesdale to 200 million from ￡ to reached ￡ 500 m in the capital.

However, some banks were unwilling to support the regime, arguing that preferably officials for distribution companies existing venture capital money would not strengthen capacities on the market.

In July, under political pressure for action in business lending by the coalition Government, banks took on the project for themselves in the proposals worked by the task force on the BAA business finance.

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