The Chancellor’s Budget announcement of a two year extension to the Recovery Loan Scheme, launched during the Covid pandemic to support small businesses, has been welcomed by BCRS Business Loans, one of the socially motivated Community Development Finance Institutions (CDFIs) to distribute the funds.
Since 2020, BCRS Business Loans has delivered 188 Recovery Loan Scheme loans with a total value of £14,742,032 creating 926 jobs and safeguarding a further 2097 roles.
Wolverhampton-based BCRS Business Loans offers loans to SMEs across the West Midlands and Wales who are unable to access finance from traditional sources by providing secure loans from between £10,000 and £150,000 to support growth and recovery plans.
Stephen Deakin, Chief Executive, BCRS Business Loans said: “We are delighted the Recovery Loan Scheme (RLS) will continue and welcome the Chancellor’s announcement as the scheme has proven to be an essential tool to unlock small businesses growth.
“Our ethos at BCRS is that no viable business should go unsupported so the extension will allow CDFIs like us to lend to under-served but viable companies, many in communities which are starved of investment.
“We are pleased the Government has listened to the calls from CDFIs, impact investors and business representatives including our national membership body Responsible Finance to extend the scheme, which has delivered value for money.
“Small businesses need the right finance at the right time to develop, support jobs and create opportunities. By having delivered £14.7million through 188 loans since 2020 we have enabled the RLS to provide help for West Midlands businesses when they needed it most in times of unprecedented challenges.
“Knowing the scheme is continuing will enable CDFIs to secure more investment, support more small businesses and create jobs, opportunities and prosperity in communities.”
The RLS announcement comes after BCRS Business Loans was appointed as a fund manager for three funds including the new Midlands Engine Investment Fund II, announced last week, which will deliver a £400m commitment of new funding for businesses across the Midlands.
BCRS is also a delivery partner for the first £130 million Investment Fund for Wales, launched in November and the £62m Community Investment Enterprise Fund (CIEF), announced on Monday, which aims to invest in 800 small businesses nationally and support 10,500 jobs and is the first to be supported by a mainstream lender in Lloyds Bank.
Since BCRS Business Loans was founded in 2002, it has provided loans worth more than £85 million 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.
