British Business Investments secures £20m Tier 2 facility

By Gloria Methri

British Business Investments has announced a new £20 million Tier 2 capital facility for Cambridge and Counties Bank Limited. Funds raised from the facility will enable Cambridge & Counties Bank to increase its volume of competitive lending to smaller businesses over and above levels it might have otherwise been able to provide.

The investment has been made through British Business Investments, a wholly-owned commercial subsidiary of the British Business Bank, that aims to increase the supply and diversity of finance for smaller businesses across the UK by boosting the lending capacity of a range of finance providers.

Since it was established in 2014, British Business Investments has committed more than £3.3 billion to providers of finance to UK smaller businesses. The British Business Bank has been supporting Cambridge & Counties Bank since 2018, with a £100 million guarantee through the ENABLE Guarantee programme, renewed in March 2023.

Leicester-headquartered Cambridge & Counties Bank specialises in providing lending and deposit products for smaller businesses. It was established in 2012 and lends to smaller businesses to invest in their own commercial premises, and to experienced commercial and residential property investors. It also provides finance for smaller businesses to acquire essential assets such as equipment, plant, machinery, or vehicles, using hire purchase and finance lease facilities.

Judith Hartley, CEO, British Business Investments, said, “At British Business Investments, our mission is to increase the overall supply and diversity of finance for smaller businesses across the UK. This £20m Tier 2 facility to Cambridge and Counties Bank supports that mission and will help smaller businesses across the UK access the capital they need to grow.’’

Andrea Hodgson, Chief Financial Officer, Cambridge & Counties Bank, said, “We greatly value our long-standing relationship with the British Business Bank and are grateful to it for its latest investment in our new Tier 2 issuance program. As we progressively draw down on this, we will deploy the additional regulatory capital to further support our UK SME client base with their own financing and growth ambitions.”