National small business lender to benefit from £43.5m under British Business Bank initiative
The British Business Bank has confirmed Finance For Enterprise as the fifth accredited partner within its Community ENABLE Funding Programme.
FFE — a registered small business lender that operates nationally — will be allocated £43.5m under the programme to provide loans between £25,001 and £250,000. This will unlock capital for underserved smaller businesses across regions in England and Wales, including the South West.
The loans can be utilised for any legitimate business purpose, including funding growth, purchase of equipment or machinery, working capital, business expansion plans, as well as supporting business purchases (MBO/MBI transactions).
Borrowers provided with these loans are expected to include businesses located in disadvantaged areas, those who have less awareness of the finance options available to them, or underrepresented groups, such as female and ethnic minority-led businesses declined by traditional lenders.
The programme works by increasing the availability of funding to social impact SME-lenders, and in turn the smaller businesses they serve in local communities. It is aimed at Community Development Financial Institutions (CDFIs) and will provide a significant boost to the sector, supporting up to £150m of lending over its first two years.
With the accreditation of FFE, a total of £82m has now been allocated to CDFIs under the programme.
CDFIs typically have strong, local knowledge of the smaller businesses they support and the communities they reside in. As such, they are well placed to provide the right finance which can unlock the potential in those communities. Through this knowledge, they can help remove barriers to accessing finance experienced by businesses.
Founded in 1985, Finance For Enterprise was created with the goal of initially boosting Doncaster’s business economy — since then, it has expanded the geographical areas it operates in, supporting businesses across England and Wales.
Blair McDougall, Minister for Small Business, said, “Through our Plan for Small Business, we are breaking down the barriers SMEs face when accessing finance.
“This includes supporting the growth of organisations like Finance For Enterprise that lend to underserved smaller firms, helping create jobs, opportunities, and growth for local economies in regions like Yorkshire and The Humber.”
Reinald de Monchy, Chief Banking Officer, British Business Bank, added, “It is great to welcome Finance For Enterprise as the fifth accredited lender under the Community ENABLE Funding programme. FFE supports a breadth of small businesses across multiple regions across the UK, and the facility size it has been allocated demonstrates our belief in their ability to carry out their mission effectively and support a host of smaller businesses.”
For more about FFE, visit: finance-for-enterprise.co.uk
Pictured above: Reinald de Monchy, Chief Banking Officer, British Business Bank
