sector, so many more such businesses can access the finance they need.

CDFIs typically have strong, local knowledge of the smaller businesses they support and the communities they reside in. As such, they are well placed to provide the right finance which can unlock the potential in those communities. Through this knowledge, they can help remove barriers to accessing finance experienced by businesses.

FFE will be allocated £ 43.5 million under the programme to provide loans between £ 25,001 and £ 250,000, to unlock capital for underserved smaller businesses across England and Wales.

The loans can be utilised for any legitimate business purpose, including funding growth, purchase of equipment or machinery, working capital, business expansion plans, as well as supporting business purchases( MBO / MBI transactions).

The borrowers provided with these loans are expected to include businesses located in disadvantaged areas, those who have less awareness of the finance options available to them or underrepresented groups, such as female and ethnic minority-led businesses declined by traditional lenders.

The programme works by increasing the availability of funding to social impact SME-lenders, and in turn the smaller businesses they serve in local communities. It is aimed at Community Development Financial Institutions( CDFIs) and will provide a significant boost to the sector, supporting up to £ 150 million of lending over its first two years.

With the accreditation of FFE, a total of £ 82 million has now been allocated to CDFIs under the programme, demonstrating strong progress towards this target.

CDFIs are regional, social impact SME-lenders that provide debt finance and support to underserved smaller businesses, which may find it difficult to access finance from mainstream lenders. One of the key objectives of the programme is to help develop the whole

Founded in 1985, FFE was created with the goal of initially boosting Doncaster’ s business economy, by combining practical business advice alongside small business lending. Since then, it has expanded the geographical areas it operates in, supporting businesses across England and Wales.

Over the past five years, FFE has provided £ 54 million of loans. The funding it has provided has helped to create more than 1,400 new jobs and safeguarded 1,800 roles. This has resulted in a net economic contribution of more than £ 140 million.

Blair McDougall, Minister for Small Business, said:“ Through our Plan for Small Business, we are breaking down the barriers SMEs face when accessing finance.

“ This includes supporting the growth of organisations like Finance For Enterprise that lend to underserved smaller firms, helping create jobs, opportunities and growth for local economies in regions like Yorkshire and The Humber.” �

Intelligent SME. tech

29