BCRS Business Loans hits £4m milestone for CIEF investment
Community lender BCRS Business Loans has hit a milestone in lending £4m on behalf of the latest Community Investment Enterprise Fund (CIEF), helping to further generate economic growth and job creation.
In total, £4.05m in loans was delivered to 49 businesses across Wales and the West Midlands, creating 144 jobs and protecting a further 525 while generating £25.5m in economic impact for the area.
Funded by Lloyds Bank, along with social impact investor Better Society Capital (BSC) with contributions from the three participating CDFIs, BCRS Business Loans, Business Enterprise Fund and Finance for Enterprise, the £62m CIEF aims to invest in 800 small businesses nationally and support 10,500 jobs. The capital provided is available to SME’s which are unable to access the finance they need from traditional sources.
CIEF, which launched in March 2024 is backed by Lloyds Bank, the first mainstream lender at scale to finance loans for delivery through socially motivated Community Development Finance Institutions (CDFIs), including BCRS Business Loans.
BCRS Business Loans supports the CIEF delivery in Wales and the West Midlands by providing secure loans between £25,000 and £250,000 to enable growth and recovery plans.
The latest fund for small businesses operating in economically disadvantaged areas, which follows a successful first phase of CIEF funding, is managed by Social Investment Scotland (SIS), which has been investing in the social sector since 2001 and is itself CDFI. BCRS Business Loans delivered loans during the original CIEF programme.
BCRS Business Loans chief executive Stephen Deakin added:“To surpass the £4m mark in such a short space of time is great news.
“Everyone at BCRS Business Loans has worked hard to deliver the CIEF funding to support businesses across the region which are looking to grow, invest in their business and provide jobs at a time when the economic landscape is challenging.”
Alastair Davis, CEO, Social Investment Scotland said:“Congratulations to BCRS Business Loans for their outstanding achievement with the new CIEF. Their dedication to supporting small businesses in economically disadvantaged areas is truly commendable. This success demonstrates the power of targeted investment in fostering growth and creating opportunities within our communities.”
The delivery of CIEF investment comes after BCRS Business Loans was named as one of the fund managers for the £130m Investment Fund for Wales and the Midlands Engine Investment Fund II, which is delivering a £400m commitment of new funding for businesses.
Since BCRS Business Loans was set up in 2002, it has provided loans worth more than £95m to businesses. A social impact report for the last financial year showed BCRS lent £6.5m to 72 businesses, safeguarding 999 jobs and creating 473 roles, adding £33.7m in value to the economy of the West Midlands and surrounding regions.