Indeed, small businesses are among those set to benefit from the introduction of the facility as it looks to provide finance to firms keen on growth.
And Sir Paul says he is delighted to be a part of the advisory group and believes that the vast experience of members should help in its development.
Business Secretary Vince Cable said: "Small and medium-sized businesses are the lifeblood of the British economy but they are currently struggling to accrue the long term capital they need to grow.
"This is an important gap in their growth cycle which the business bank will plug by offering new sources of finance."
It comes after the Federation of Small Businesses revealed earlier this week that small business confidence is on the rise.
Posted by Thomas Fletcher