The Yorkshire and the Humber region is to get a share in £20m through the Business Enterprise Fund to support support for small firms, via an investment from Lloyds Bank & Big Society Capital.
To support local jobs and improve the economy, the investment is part of a £62m boost to help Community Development Finance Institutions back businesses in the most deprived areas of England and Wales.
BEF, which operates across Yorkshire and the Humber, the North East and the North West, is one of three CDFIs selected to receive the funding, with criteria ensuring that the money goes towards socially motivated lenders who are already lending around £100m every year to businesses which traditional and challenger banks or fintech can’t service.
The fund is designed to support underserved communities including BAME and female led businesses; CDFIs have become known for working with such businesses and providing support where mainstream banking cannot.
Stephen Waud, CEO of BEF said: “It’s good news that mainstream lenders such as Lloyds Bank recognise the transformative effects that CDFIs have in the communities they serve. It’s all about providing business owners, and aspiring business owners, with the opportunity to go to market with their ideas. There’s also a real focus on trickle up, rather than trickle-down economics, where job creation and wealth generation in these communities create proven economic change.
“We’re thrilled to be one of the CDFIs helping to utilise this fund and support small businesses and local economies. We plan to support over 280 businesses and create nearly 600 jobs with the funds that we have, helping both female and BAME led businesses with the opportunity to prove their success.”
Elyn Corfield, CEO Business and Commercial Banking at Lloyds Bank, said: “SMEs are the heartbeat of the UK economy and as the largest domestic banking group, we have a proud history of supporting UK businesses to thrive. We’re therefore delighted to support the CDFI sector to back local businesses, with a focus on deprived areas, and ensure they have access to a range of financial options right for them. When local businesses flourish so do local communities and we hope our leadership within this second phase of CIEF will see many more areas of the UK succeed.”
