Community lender BCRS Business Loans has reached another milestone in generating economic growth and job creation by passing £4m in lending on behalf of the latest Community Investment Enterprise Fund (CIEF).
The Wolverhampton-based company has achieved seven figures in loans delivered for the second CIEF, which was launched in March and backed by Lloyds Bank, the first mainstream lender at scale to finance loans for delivery through socially motivated Community Development Finance Institutions (CDFIs) including BCRS Business Loans.
In total, £4.05m in loans was delivered to 49 SMEs, creating 144 jobs and protecting a further 525 while generating £25.5m in economic impact for the West Midlands and Wales.
The new £62m CIEF, managed by responsible finance provider Social Investment Scotland (SIS), offers investment to businesses unable to access finance from traditional sources. BCRS Business Loans supports the CIEF delivery in the West Midlands and Wales by providing secure loans between £25,000 and £250,000 to enable growth and recovery plans.
Among those to benefit from CIEF was online training provider for the automotive industry, Our Virtual Academy based in Shropshire which received £97,000 to deliver an innovative virtual reality solution.
Our Virtual Academy managing director Ben Stockton said:
“We know from speaking to our customers that there is significant interest in VR training, especially for electric vehicles. The investment will enable us to continue to stay at the forefront of training technology associated with the motor industry.
“A lot of training is solely focussed on passing tests to achieve a certificate, our approach is to ensure technicians are provided with meaningful work experiences and an understanding of how to be productive and competent at their job.
“BCRS have been great – they take the time to understand the business and their lending decisions are not only based on the numbers but me as an MD and my vision for the business.”
Funded by Lloyds Bank, along with social impact investor Better Society Capital (BSC) and contributions from the three participating CDFIs, BCRS Business Loans, Business Enterprise Fund and Finance for Enterprise, the new CIEF aims to invest in 800 small businesses nationally and support 10,500 jobs.
The latest fund for small businesses operating in economically disadvantaged areas, which follows a successful first phase of CIEF funding, is managed by Social Investment Scotland (SIS), which has been investing in the social sector since 2001 and is itself a CDFI. BCRS Business Loans delivered loans during the original CIEF programme.
BCRS Business Loans chief executive Stephen Deakin added:
“To surpass the £4m mark in such a short space of time is great news. Everyone at BCRS Business Loans has worked hard to deliver the CIEF funding to support businesses across the region who are looking to grow, invest in their business and provide jobs at a time when the economic landscape is challenging.”
Alastair Davis, CEO, Social Investment Scotland said:
“Congratulations to BCRS Business Loans for their outstanding achievement with the new CIEF. Their dedication to supporting small businesses in economically disadvantaged areas is truly commendable. This success demonstrates the power of targeted investment in fostering growth and creating opportunities within our communities.”
Andrew Asaam, West Midlands Ambassador at Lloyds Banking Group, said:
“We are pleased to see such a varied range of businesses benefit from our recent investment in CIEF, with thanks to BCRS Business Loans who’ve been instrumental in enabling owners to access funding to create economic opportunity.”
Victoria Crisp, Investment Manager at Better Society Capital, added:
“Better Society Capital is pleased to see the progress made by BCRS Business Loans in ensuring CIEF investment is put to use through investment opportunities to help small enterprises prepare for growth.”
The delivery of CIEF investment comes after BCRS Business Loans was named as a fund manager for the £130m Investment Fund for Wales and the Midlands Engine Investment Fund II, which is delivering a £400m commitment of new funding for businesses.
Since BCRS Business Loans was set up in 2002, it has provided loans worth more than £95m to businesses. A social impact report for the last financial year showed BCRS lent £6.5m to 72 businesses, safeguarding 999 jobs and creating 473 roles, adding £33.7m in value to the economy of the West Midlands and surrounding regions.
