SWIG Finance allocated £17.5m by the British Business Bank to support the smaller business community across SW England
The British Business Bank has allocated £17.5m to SWIG Finance to support underserved smaller businesses across the South West of England, with loans from £25,001 to £250,000.
SWIG is the 7th Community Development Finance Institution (CDFI) lender accredited by the British Business Bank under its Community ENABLE Funding programme and the first with a dedicated focus on the South West.
As a CDFI, SWIG Finance is a regional, social impact lender that provides debt finance and support to underserved smaller businesses that may find it difficult to access finance from mainstream lenders.
CDFIs typically have strong, local knowledge of the businesses they support and the communities they reside in. As such, they are well placed to help remove barriers to accessing finance experienced by businesses, which can unlock the potential in those communities.
One of the key objectives of the British Business Bank’s Community ENABLE Funding programme is to help develop the CDFI sector across the UK, and the programme will provide a significant boost to the sector, supporting up to £150m of lending over its first two years.
The Community ENABLE Funding programme works by increasing the availability of funding to social impact small business lenders, who in turn can provide that funding to the smaller businesses they serve in local communities.
SWIG Finance was established in 1992 to raise and provide gap finance for local businesses for the purpose of economic development. As a not-for-profit social enterprise, it is passionate about bringing social and economic benefits to people, places and the business community in the South and West Country.
Since April 2009, SWIG Finance has invested over £97.6m in 5,230 businesses, creating and safeguarding 9,350 jobs and contributing £352.9m to the South and West Country economy.
Blair McDougall, minister for Small Business said:“No business with the ambition and ability to grow should be held back because they can’t access the finance they need. That’s why this investment matters.
“By supporting community lenders with deep local knowledge, we are breaking down barriers to finance for underserved businesses across the South West, to ensure more entrepreneurs have the opportunity to start, scale and succeed.”
Reinald de Monchy, chief banking officer, British Business Bank, said: “The South West of England is a region rich in untapped potential, and it deserves a diverse and thriving small business ecosystem so that talent, jobs and investment can flourish locally. SWIG Finance already play a vital role in helping to achieve that ambition and welcoming them as the Community ENABLE Funding programme’s 7th accredited lender marks an important further development for the region.
“SWIG has been a trusted lender in the South West for over three decades, and we look forward to seeing the impact they will deliver to smaller businesses across the region through this facility.”
Matt Wilde, managing director, SWIG Finance, said: “This is a major milestone for SWIG Finance and the small business communities we are here to support.
“This allocation gives us the scale and long-term confidence to expand our lending and increase our impact. It will enable us to support more viable businesses, create and protect jobs, and ensure finance reaches entrepreneurs with strong plans and potential – especially where mainstream funding is harder to access.
“The South West has huge economic potential, from rural and coastal communities to towns and cities. Our role is to help unlock that potential by providing finance that is practical, accessible, and tailored to the needs of the communities we serve.
“Having worked with the British Business Bank to deliver a range of funds over the years – including Start Up Loans, the South West Investment Fund, and the Growth Guarantee Scheme – we are proud to continue our partnership through the Community ENABLE Funding programme and excited about the impact it will have on small businesses across the region.”