The bank was established in 2014 with the goal of increasing the availability of finance for SMEs and improving the overall health of the UK economy. The bank is a government-owned entity, but it operates at arm's length from government, with a mandate to operate on a commercial basis. It provides finance to SMEs through a variety of channels, including through partnerships with commercial banks and other lending institutions, as well as directly through its own lending programs. The bank's activities are focused on addressing market failures and improving access to finance for SMEs, particularly those that are considered to be underserved by the traditional banking sector.