LendInvest (LSE:LINV) has announced a partnership with the British Business Bank to aid in the building of more homes, financed by HSBC, according to a note from the Fintech.
LendInvest states that HSBC will provide £100 million for LendInvest’s development finance program. The project is supported by theBritish Business Bank’s ENABLE Guarantee program. This will increase LendInvest’s total Funds under Management to more than £3.6 billion.
The ENABLE Guarantee program aims to encourage lenders to increase their advances to smaller businesses. Under an ENABLE Guarantee, the UK Government takes on a portion of the risk on a portfolio of loans to smaller businesses, in return for a fee.
Rod Lockhart, LendInvest Chief Executive Officer said that it is well known that there is an undersupply of housing in the UK and the are pleasded to be working with both the British Business Bank and HSBC to alleviate the challenge.
“The UK is a nation of homeowners without enough homes to own. Smaller property developers have a key role to play in making up this shortfall. The guarantee from the British Business Bank and the funding from HSBC, combined with our expertise in lending, is key to supporting these developers.”
Reinald de Monchy, Managing Director, Guarantee and Wholesale Solutions, British Business Bank, added:
“Unlocking finance through this facility is a great example of the difference the ENABLE Guarantee programme can make in the market. Thanks to this new partnership, LendInvest will be able to help more smaller property developers build more homes across the UK.”