British Business Bank agrees ENABLE Guarantee transaction of up to £300m with Close Brothers
The British Business Bank has agreed a transaction of up to £300m with Close Brothers under the ENABLE Guarantees programme, unlocking significant additional lending capacity.
The transaction will support a portfolio within Close Brothers Asset Finance, covering hire purchase, sale and hire purchase back and leasing facilities. Asset finance plays an important role for UK smaller businesses, with the market reaching a record £23.5bn in 2024.
Asset finance allows smaller businesses to finance business critical, capital assets, enabling them to invest in their businesses to grow. It supports businesses in switching to more sustainable practices by funding green assets.
The Finance & Leasing Association estimates that asset finance accounted for one-third of all UK investment in vehicles, machinery, and equipment in 2024.
The ENABLE Guarantees programme is designed to encourage additional lending to smaller businesses. Participating institutions are incentivised by a government-backed guarantee which supports defined portfolios of debt finance in return for a fee.
The programme is open to all UK banks, UK branches of foreign banks, asset finance providers and asset-based finance providers, as well as certain other categories of lenders which lend, or intend to lend, to viable small and medium-sized businesses operating in the UK.
Michael Strevens, managing director, Structured Financial Institutions, British Business Bank said:“Close Brothers is a trusted and long-standing finance provider to thousands of UK smaller businesses. This transaction reflects both institutions’ commitment to ensuring small businesses continue to access the finance they need — especially in tougher times. We’re pleased to support this deal that helps Close Brothers to provide even greater support to smaller businesses across the UK.”
Matt Roper, CEO, Close Brothers Commercial, added:“We are a proud supporter of the UK’s SME community and are delighted to be participating in the ENABLE Guarantees programme, in partnership with the British Business Bank.
“Close Brothers Commercial – which our asset finance business is a key part of – provides almost £5bn of lending to business owners, with loan sizes ranging from £5k to £100m; the ENABLE programme will allow us to support a larger number of firms as they look to invest in their future.”
Close Brothers is also an accredited delivery partner for several other British Business Bank programmes. These include the Growth Guarantee Scheme and legacy schemes such as the Recovery Loan Scheme (RLS), the Coronavirus Business Interruption Loan Scheme (CBILS), the Bounce Back Loan Scheme (BBLS) and the Coronavirus Large Business Interruption Loan Scheme (CLBILS).