Community lender reaches £4m milestone for CIEF investment
Wolverhampton-based community lender BCRS Business Loans has reached another milestone in generating economic growth and job creation by passing £4m in lending on behalf of the latest Community Investment Enterprise Fund (CIEF).
Funded by Lloyds Bank, along with social impact investor Better Society Capital (BSC) and contributions from the three participating CDFIs, BCRS Business Loans, Business Enterprise Fund and Finance for Enterprise, the new £62m CIEF aims to invest in 800 small businesses nationally and support 10,500 jobs.
The capital provided will be available to SME’s who are unable to access the finance they need from traditional sources.
CIEF, which was launched in March 2024 and 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.
In total, £4.05m in loans was delivered to 49 businesses, creating 144 jobs and protecting a further 525 while generating £25.5m in economic impact for the West Midlands and Wales.
The new £62m CIEF offers investment to businesses unable to access finance from traditional sources.
BCRS Business Loans supports the CIEF delivery in the West Midlands and Wales 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 who are looking to grow, invest in their business and provide jobs at a time when the economic landscape is challenging.”
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.
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Pictured: Back to front (L-R) BCRS Business Loans senior business development manager David Malpass, business development manager James Pittendreigh, business development manager Mark Savill, senior business development manager Angie Preece and head of credit Tony Wood
