Boost for region’s SMEs as lender secures multimillion-pound funding
A not for profit business lender has secured additional funding from a national programme to support small businesses in the West Midlands unable to access commercial finance.
BCRS Business Loans has secured £7.5m from the Community Investment Enterprise Facility (CIEF), established by Big Society Capital and managed by Social Investment Scotland (SIS).
It is also in advanced negotiations with an ethical bank to raise a further £7.5m, which will be matched by Big Society Capital to create an overall fund of £15m.
Stephen Deakin, finance director of BCRS Business Loans, who was shortlisted in TheBusinesDesk.com’s recent Leadership Awards, said:“This £15m facility is really great news, not only for BCRS, but for SMEs across the West Midlands and surrounding areas who are looking to realise their growth and business aspirations.
“Alongside the Midlands Engine Investment Fund, this fund will enable us to achieve ambitious growth plans, which will enable us to increase our lending by 25% per annum for the next five years.
“The aims of this fund are very much aligned with our vision at BCRS Business Loans, which is to ensure that no viable business in the West Midlands goes unsupported.
“The fund is the culmination of over three years hard work and is a really exciting proof of concept fund that we hope to replicate a number of times to enable BCRS to leverage significant capital for on lending. This will help even more small businesses, which subsequently helps create and safeguard jobs for local people.”
Alastair Davis, chief executive of Social Investment Scotland, said: “We are delighted to be managing the CIEF and have enjoyed working with the team at BCRS in bringing this fund to the market. In addition, both organisations are excited to be working with Sheffield Hallam University in a long-term research project measuring the impact of this fund in how it can benefit traditionally under-served areas.”
The fund will utilise the British Business Bank’s Enterprise Finance Guarantee (EFG) scheme which facilitates business finance to smaller businesses that are viable but unable to obtain finance from their lender due to having insufficient security to meet the lender’s normal requirements.
