The British Business Bank says it has launched the ENABLE Funding (CEF) program that aims to increase funding to the social impact sector. The Bank states that the initiative is primarily seeks to assist Community Development Financial Institutions (CDFIs), and is expected to provide a significant boost to the sector, supporting up to £150 million of lending over the next two years.
CDFIs are not-for-profit, social-impact lenders that support smaller firms that are challenged to access traditional debt funding.
The ENABLE Funding program is expected to be rolled out in two phases. In the first phase, the Department for Business and Trade will provide 100% of the program’s funding via the British Business Bank, enabling CDFIs to make more finance available to smaller businesses.
In the second phase, the Bank says it will source additional funding from private sector investors.
In 2023, the social impact sector reportedly lent £102 million to 4,546 smaller businesses across the UK.
Louis Taylor, CEO, British Business Bank said the Community ENABLE Funding program is designed to unlock finance across the UK’s Nations and regions for those small businesses who need it but have struggled to access it historically.
