British Business Investments Announces £20M Tier 2 Facility with Cambridge & Counties Bank

British Business Investments announces a new £20m Tier 2 capital facility for Cambridge & Counties Bank Limited.

Funds raised from the facility will enable Cambridge & Counties Bank “to increase its volume of competitive lending to smaller businesses over and above levels it might have otherwise been able to provide.”

The investment has been “made through British Business Investments, a wholly-owned commercial subsidiary of the British Business Bank, that aims to increase the supply and diversity of finance for smaller businesses across 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 £3.3 billion to providers of finance to UK smaller businesses.”

The British Business Bank has been “supporting Cambridge & Counties Bank since 2018, with a £100m guarantee through the ENABLE Guarantee program, renewed in March 2023.”

Leicester-headquartered Cambridge & Counties Bank “specializes 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.” It also provides finance for smaller businesses to acquire essential assets “such as equipment, plant, machinery, or vehicles, using hire purchase and finance lease facilities.”

Judith Hartley, CEO of British Business Investments, said:

“At British Business Investments, our mission is to increase the overall supply and diversity of finance for smaller businesses across the UK. This £20m Tier 2 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.’’

Andrea Hodgson, Chief Financial Officer, Cambridge & Counties Bank, said:

“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 2 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.”

As covered, British Business Investments Limited is “a wholly owned commercial subsidiary of British Business Bank plc, the UK government’s economic development bank. British Business Investments aims to earn a commercial return by investing – through finance providers – in smaller businesses and small mid-caps, pursuing investments on a fully commercial basis without receiving any economic advantage from the government.”

The Bank and its subsidiary entities are “not banking institutions and do not operate as such. They are not authorised or regulated by the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA).”

As noted in the update, Cambridge & Counties Bank says that it “specializes in providing lending and deposit products for Small and Medium Enterprises (SMEs).”

It provides products through “a network of relationship managers who deal via business introducers as well as directly with customers.”

The bank, which has a management team “led by chief executive Donald Kerr, is jointly owned by Trinity Hall, a College of the University of Cambridge, and Cambridgeshire Local Government Pension Fund.”

The bank is authorized “by the Prudential Regulation Authority (PRA), regulated by the Financial Conduct Authority (FCA) and the PRA, and registered under the Financial Services Compensation Scheme.”

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