British Business Bank ENABLE Guarantee opens to new types of lenders

20-May-2019

Asset finance and asset-based lending providers, as well as certain other categories of lender, are now eligible to apply for the ENABLE Guarantee programme

Opening ENABLE Guarantees to new types of lenders aims to increase the diversity of both supplier and type of finance available to smaller businesses

The British Business Bank’s ENABLE Guarantee programme is now accepting applications from new types of lenders, with the aim of increasing the diversity of both supplier and type of finance available to smaller businesses.

The extension means the programme can now support asset finance and asset-based lending providers, as well as certain other categories of lender. Participants in the programme are required to lend – or intend to lend – to viable small and medium-sized enterprises operating in the UK. Previously, eligibility was restricted solely to UK banks and UK branches of foreign banks.

By expanding the programme to new types of lenders the Bank will now be able to support more specialised lending to a broader range of smaller finance providers.

Reinald de Monchy, managing director, Guarantee and Wholesale Solutions, British Business Bank, commented: “Our ENABLE Guarantee programme helps smaller businesses in the UK access the right funding by supporting a wide range of lending products. This extension to the programme will increase the range of options available and help more UK smaller businesses to access the finance they need to prosper and grow.”

Small business minister Kelly Tolhurst said: “Through our modern Industrial Strategy we are fully committed to supporting our small businesses to succeed while retaining our status as one of the best places in the world to start and grow a small business.

“This enhancement of the ENABLE Guarantee, supported by the Government-backed British Business Bank, reflects the changed landscape for business finance. Thanks to the innovation of our world-leading fintech sector, finance markets for smaller businesses are more diverse than ever before. Extending the ENABLE Guarantee to lenders other than banks will help the growth of new entrants and new products, providing greater choice and competition for SMEs.”

Under the ENABLE Guarantee programme, the UK Government takes on a portion of the lender’s risk on a portfolio of loans to smaller businesses, in return for a fee. The British Business Bank has so far committed guarantees for live portfolios of over £900m under its ENABLE Guarantee programme (as at end April 2019).

The Request for Proposals for the ENABLE Guarantee programme can be downloaded from the British Business Bank website.