Community business finance provider BCRS Business Loans has lent more than £10m to generate job creation and economic growth through the Community Investment Enterprise Fund (CIEF).
The Wolverhampton-based lender has delivered £10.3m in loans to 121 companies, creating 288 jobs and protecting a further 1337 roles while generating £52m in added economic value for the West Midlands and Wales.
The £62m CIEF was launched in 2024 to enable business growth and is backed by Lloyds, the first mainstream lender at scale to finance loans for delivery via socially motivated Community Development Finance Institutions (CDFIs) such as BCRS Business Loans.
Managed by responsible finance provider Social Investment Scotland (SIS), the CIEF provides investment to businesses unable to access finance from traditional sources. BCRS Business Loans oversees the CIEF delivery in the West Midlands and Wales by providing secure loans between £25,000 and £250,000.
Through the CIEF BCRS Business Loans aims to support businesses in communities underserved by traditional lending. To date, 26 per cent of the SMEs to access CIEF funds through BCRS Business Loans were female-led, with a further 26 per cent going to businesses led by people from ethnic minorities.
Among those to benefit is online retailer Vabe Wholesale Ltd, based at Middlemore Industrial Estate, West Bromwich. Vabe Wholesale secured £50,000 in CIEF funds through BCRS Business Loans to buy stock and invest in marketing as part of a strategy to increase turnover and profits.
The e-commerce business, which specialises in selling stationery, food and beverages, was launched by Vivian and Aaron Akaforonye in 2020 to capitalise upon the online shopping boom in the Covid-19 pandemic. At the time, Vivian worked as a carer while Aaron was a gas engineer. The business has grown to provide the couple with full-time work and they aim to near double turnover next year.
Vivian said:
“We plan to invest the funds in the business, increasing the stock range and creating jobs. We have grown to a level where we both work full-time in the business and are investing in our own platform.
“It has been a smooth experience with BCRS Business Loans as they worked with us, supported and guided us until the loan was released. We would recommend BCRS Business Loans as they are always very helpful.”
BCRS Business Loans chief executive Stephen Deakin said:
“Passing £10m in lending shows the growing impact we are achieving through the CIEF, helping businesses like Vabe Wholesale to grow to the next level. We want to help as many enterprises as possible through the CIEF, backing firms to create employment throughout the West Midlands and Wales.”
The CIEF aims to help 800 small firms and create 10,500 jobs in economically disadvantaged areas by using the funds from Lloyds and social impact investor Better Society Capital plus the three CDFIs taking part, BCRS Business Loans, Business Enterprise Fund and Finance for Enterprise.
The CIEF is the second to be launched and is managed by CDFI Social Investment Scotland, which has invested in the social sector since 2001. BCRS Business Loans also delivered smaller loans for the first fund.
Alastair Davis, CEO, Social Investment Scotland said:
“Congratulations to BCRS Business Loans for passing the £10m funding total with the CIEF. Their focus upon enabling small businesses in economically underserved areas to access finance shows the power of local, knowledgeable support in backing growth and creating jobs in our communities.”
Andrew Asaam, Lloyds Ambassador for the Midlands, said:
“We are pleased to see BCRS Business Loans support 121 enterprises to realise their ambitions through the latest CIEF funding round. It is particularly encouraging that more than a quarter of this support has reached female‑led businesses, with a further 26 percent going to businesses led by people from ethnic minority backgrounds. This progress reflects our commitment to enhancing access to finance and ensuring that economic prosperity is shared more widely across the communities we serve.”
Delivering on its goal of ensuring no viable business goes unsupported, BCRS Business Loans is also a fund manager for the small funds pot of the £130m Investment Fund for Wales and for the Midlands Engine Investment Fund II, which will deliver £400m in funding for businesses across the Midlands.
Since launching in 2002, BCRS Business Loans has passed £100 million in total lending, generating overall £518 million in economic impact. Up to the end of April, the finance provider supported 1,594 businesses, creating more than 5,900 jobs and safeguarding 11,779 existing roles.
The most recently completed financial year was one of the best ever for BCRS Business Loans, with the lender providing £9.9m to 124 businesses, a 68% increase year on year, safeguarding 889 jobs and creating 317 roles while adding £51.2m to the economy of the West Midlands, surrounding region and Wales. Of the funding, 34.6 per cent went to the UK’s most disadvantaged areas.
