The British Business Bank is opening its ENABLE Guarantee programme – which reduces the capital banks need to hold to support some of their lending – to all banks that lend to smaller UK businesses.
The British Business Bank is making the move after the completion of its first ENABLE Guarantee transaction with Clydesdale and Yorkshire Banks, which will support £125m of new lending to smaller businesses.
At least £50m of this funding will go to products and industry segments the bank have not previously covered, such as cash flow lending specifically for SMEs, automotive tooling finance, creating an emerging technology lending unit and introducing a new renewables finance offering. The remainder will enable additional lending in areas where Clydesdale and Yorkshire Banks are already active.
“Our ENABLE programme represents a significant scaling up of our firepower in making finance markets work better,” said Keith Morgan, CEO of the British Business Bank. “The funding unlocked by the programme will make a real difference to smaller UK businesses.”
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