The British Business Bank has reached the landmark milestone of more than £145m of lending to the manufacturing sector, through its ENABLE Guarantee programme. Over £35m of that total was provided over the last financial year.
Over 230 smaller businesses in the manufacturing sector have benefitted from lending through the ENABLE Guarantee programme. The increased availability of finance reaching these smaller businesses, that may not otherwise have done so, ultimately supports them to invest, grow and create jobs in the UK.
This comes as the British Business Bank has reached a major milestone, delivering £5bn in lending through its structured guarantee programmes, comprising ENABLE Guarantees and ENABLE Build. Of this total, over £3bn has been directed to businesses outside London and the South East, with around £500m provided to each of the North West, East Midlands, and East of England, supporting regional growth and access to finance.
Since 2017, the Bank’s structured guarantee programmes have encouraged both bank and non-bank lenders to expand lending to UK smaller businesses. They provide a government-backed guarantee on portfolios of new or existing smaller business loans, helping reduce lender risk.
Smaller and medium-sized businesses across the UK’s manufacturing industry have benefitted significantly from the ENABLE Guarantees programme. In addition, the structured guarantees programmes have provided over £2.3bn of support to the construction and housing sectors, including c.£1.2bn under ENABLE Build. Other notable sectors that have benefitted include financial services and insurance, with over £350m, and retail, with over £800m since FY 2017/18.
The schemes are open to a wide range of UK and foreign lenders that are active in the UK market.
Together, these initiatives support the British Business Bank’s mission to promote sustainable growth by improving access to finance for smaller businesses across the UK.
Chancellor of the Exchequer, Rachel Reeves, said: “Our work with the British Business Bank is one of many levers we are pulling to go further and faster in our mission to deliver economic growth for the entire country and put more money in people’s pockets.
“This £5bn lending milestone is our Plan for Change in action, with the programmes delivering much-needed investment to areas outside London and the South East.”
Seamus Nevin, Chief Economist Make UK said: “Access to finance is vital to ensuring the success of the UK’s industrial strategy and future economic growth but many manufacturers, especially SMEs, can struggle to get the support they need. The British Business Bank is playing a vital role working closely with lenders to ensure manufacturers, particularly smaller firms, have the capital they need to invest, innovate, automate, and expand.
“This success of the British Business Bank’s ENABLE Guarantees programme demonstrates the real-world impact of unlocking finance for manufacturing businesses across the country. As we look to drive productivity, regional growth, and long-term economic resilience, continued support through initiatives like this is essential to securing the future of British industry.”
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