British Business Bank announces £13m funding boost for West Midlands SME
The British Business Bank has today announced West Midlands-based Coventry and Warwickshire Reinvestment Trust (CWRT) as the third accredited delivery partner under its Community ENABLE Funding programme.
CWRT will be allocated up to £13m under the programme to provide loans above £25k, unlocking capital for underserved smaller businesses across the West Midlands. These are expected to include businesses located in disadvantaged areas, those who have less awareness of the finance options available to them, or businesses declined by traditional finance routes, such as high street banks.
In addition, the programme seeks to target underrepresented groups, such as female and ethnic-minority led businesses, raising the diversity of businesses in those areas and improving the local small business ecosystem.
The programme works by increasing the availability of funding to social impact sector lenders, and in turn the smaller businesses they serve in local communities. It is aimed primarily at Community Development Financial Institutions (CDFIs), and will provide a significant boost to the sector, supporting up to £150m of lending over the next two years.
CDFIs are regional, social impact sector lenders that provide debt finance and support to underserved smaller businesses which may find it difficult to access finance from mainstream lenders. One of the key objectives of the programme is to help develop the whole sector, so many more such businesses can access the finance they need.
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 are able to help remove barriers to accessing finance experienced by businesses in their area, in this case the West Midlands.
CWRT is a not-for-profit, FCA authorised, specialist business finance provider, committed to supporting businesses and individuals primarily based in Coventry and Warwickshire.
Since 2010, after receiving capital to on-lend from various organisations including the Coventry City Council, Warwickshire County Council, the European Regional Development Fund and Unity Trust Bank, CWRT has lent £30.37m to individuals, start-ups and existing businesses in Coventry, Warwickshire and the surrounding areas that have had difficulty in raising finance elsewhere.
All lending decisions are delegated to Community ENABLE Funding-accredited delivery partners.
Reinald de Monchy, chief banking officer, British Business Bank said: “It’s great to welcome the Coventry and Warwickshire Reinvestment Trust as a delivery partner under the Community ENABLE Funding programme. Alongside First Enterprise, we now have two CDFI lenders accredited under the programme who are committed to supporting small businesses in the Midlands.”
Sheridan Sulskis, CEO, Coventry and Warwickshire Reinvestment Trust said: “CWRT is proud to be the third lender in the UK to be accredited under the Community ENABLE Funding programme. This accreditation strengthens our ability to support businesses across Coventry, Warwickshire and the wider region, giving them access to the finance they need to grow, create jobs, and build resilience.
“At the heart of our mission is breaking down barriers to finance, with a particular focus on supporting women-led, ethnic minority-led, and disadvantaged businesses to realise their ambitions. This aligns closely with the British Business Bank’s wider mission to improve access to finance for underserved entrepreneurs across the UK.”