British Business Investments has announced a new £20m tier two capital facility for Cambridge & Counties Bank.

Funds raised from the facility will enable Cambridge & Counties Bank to increase its volume of lending to smaller businesses.

British Business Investments, a wholly-owned commercial subsidiary of the British Business Bank, aims to increase the supply and diversity of finance for smaller businesses in the UK by boosting the lending capacity of a range of finance providers. Since it was established in 2014, British Business Investments has committed more than £3.3bn to providers of finance to UK smaller businesses.

The British Business Bank has supported Cambridge & Counties Bank since 2018, with a £100m guarantee through the ENABLE Guarantee programme, which was renewed in March 2023.

British Business Investments CEO, Judith Hartley, said: “Our mission is to increase the overall supply and diversity of finance for smaller businesses across the UK. This £20m tier two facility to Cambridge and Counties Bank supports that mission and will help more smaller businesses across the UK access the capital they need to grow.”

Leicester-headquartered Cambridge & Counties Bank specialises in providing lending and deposit products for smaller businesses. It was established in 2012 and lends to smaller businesses to invest in their own commercial premises, and to experienced commercial and residential property investors.

The firm also provides finance for smaller businesses to acquire essential assets such as equipment, plant, machinery, or vehicles, using hire purchase and finance lease facilities.

Chief financial officer at Cambridge & Counties Bank, Andrea Hodgson, commented: “When we were established in 2012, our aim was to create a responsible and competitive lender which had all the hallmarks of a traditional, customer-centric bank but one combined with the speed, efficiency, and innovation of a contemporary and agile institution.

“Last year, our loan book passed £1bn for the first time, almost all of which was lent to our valued SME customer base. We greatly value our long-standing relationship with the British Business Bank and are grateful to it for its latest investment in our new tier two issuance programme. As we progressively draw down on this, we will deploy the additional regulatory capital to further support our UK SME client base with their own financing and growth ambitions.”

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