The British Business Bank has strengthened its backing for the agricultural sector by providing an additional £10 million in Tier 2 capital to specialist lender Oxbury Bank. This latest injection raises the total Tier 2 facility to £35 million, building directly on an initial £25 million commitment made in 2022. The move comes as Oxbury celebrates five years of lending to Britain’s food and farming businesses, underscoring the government-backed institution’s ongoing dedication to small and medium-sized enterprises (SMEs) at the core of the rural economy.
Oxbury, which specializes in tailored finance for smaller farms and food producers, uses the funding to help clients invest in essential areas such as land acquisition, modern infrastructure, automation technology, storage facilities, and day-to-day working capital.
The additional capital will bolster the bank’s ability to expand its lending while maintaining a proper regulatory position.
Since receiving its first Tier 2 support four years ago, Oxbury has experienced steady growth.
It has built a substantial deposit base from savers and now accounts for one in every five new farm loans across the UK on a rolling 12-month basis.
Nationally, the lender is nearing a 10 per cent share of all fresh agricultural lending.
The British Business Bank’s Tier 2 investments are designed to act as a catalyst, enabling partner banks to scale up and increase the flow of finance to underserved small businesses.
Oxbury’s capital structure blends a shareholder base deeply rooted in the farming community with stable institutional funding, creating a solid platform for continued expansion.
This latest facility highlights the Bank’s broader strategy of delivering diverse financing options to support the UK’s vital food and farming sectors.
Richard Bowen, Managing Director of Direct Financial Institution Solutions at the British Business Bank, welcomed the development.
He noted the strong partnership with Oxbury, which has involved multiple transactions since 2022, and emphasized the importance of varied finance tools for the farming economy.
Bowen expressed confidence that the extra funding would allow Oxbury to assist even more food and farming enterprises, driving growth for the farmers who rely on its services.
Nick Evans, Co-Founder and Managing Director of Oxbury Bank, expressed gratitude for the continued collaboration.
He recalled that the British Business Bank provided early support shortly after Oxbury began lending in 2022.
Evans attributed the bank’s progress over the past five years to disciplined lending practices, strong credit performance, and a shareholder group made up largely of farmers and landowners.
“The blend of farmer-led capital and government-backed support gives us a firm foundation for measured, sustainable growth,” he said.