Enterprise agency secures £25m in capital funding

Doncaster-headquartered Finance For Enterprise has secured a capital injection of £25m from Lloyds Bank and Big Society Capital (BSC), under the second phase of the Community Investment Enterprise Fund (CIEF).

It forms a part of a larger £62m investment initiative aimed at facilitating access to finance for small businesses across England and Wales.

The investment is channelled through three Community Development Finance Institutions (CDFIs) – Finance For Enterprise, BCRS Business Loans, and Business Enterprise Fund.

Lloyds Bank’s participation marks the first instance of a mainstream lender investing in the CDFI sector.

One of the beneficiaries from the initial phase of CIEF is the Estate Tea Company, based in Newcastle.

With support from CIEF via Finance For Enterprise, it was able to relocate from a cafe in Gateshead to a more spacious venue, previously a plumber’s merchant, which it transformed into a popular destination for tea enthusiasts throughout the day and night.

Andrew Austwick, managing director at Finance For Enterprise, said: “We are thrilled to have secured a significant portion of the CIEF Investment Fund.

“The success of the Estate Tea Company serves as an excellent example of how the CIEF fund can empower SMEs to thrive.

“I eagerly anticipate assisting more SMEs across the UK in benefiting from such funding opportunities.”

Elyn Corfield, CEO, business and commercial banking, Lloyds Bank, said: “Small and medium size enterprises are the heartbeat of the UK economy and as the largest domestic banking group, we have a proud history of supporting UK businesses to thrive.

“We’re therefore happy to support the CDFI sector to back local businesses, with a focus on deprived areas, and ensure they have access to a range of financial options right for them.

“When local businesses flourish so do local communities and we hope our leadership within this second phase of CIEF will see many more areas of the UK succeed.”

Anna Shiel, chief investment officer, Big Society Capital, said: “Like the small enterprises they serve, the dedication of CDFIs to create long-term impact deserves greater backing.

“The combination of their hard work, and vital tools such as the Recovery Loan Scheme guarantee, has unlocked the potential to draw in more capital from institutional investors such as Lloyds, whom we are pleased to co-invest with in this fund.

“We are thrilled to see the work of partners come together in the next stage of CIEF and especially to see how the positive track record of these CDFIs is being noticed.”