The British Business Bank has achieved significant progress in its mission to bolster small enterprises throughout the UK, having dispensed over £5 billion via its ENABLE structured guarantee programmes. Since the initial transaction in 2017, the ENABLE Guarantees and ENABLE Build schemes have supported lending across various sectors, particularly construction and housing, directing more than £3 billion to businesses situated outside London and the South East. Regions such as the North West, East Midlands, and East of England have each benefited from nearly £500 million in funding.
The ENABLE programmes aim to facilitate lending to small and medium-sized enterprises (SMEs) by providing lenders with a government-backed guarantee on specified debt portfolios. This incentive encourages banks and non-bank financial institutions to extend more funding, even to higher-risk yet viable businesses, by absorbing some of the potential losses. For a review of SME lending, [click here](https://bmmagazine.co.uk/news/sme-lending-review-launched-amid-stubbornly-high-debt-costs/).
Chancellor Rachel Reeves celebrated the milestone as evidence of her government’s growth strategy. “This £5 billion lending milestone is our Plan for Change in action,” she stated. “It’s contributing targeted investment where it’s most needed — supporting local businesses, accelerating housebuilding, and increasing household income.”
Specific emphasis on ENABLE Build has resulted in £1.2 billion of lending to SME housebuilders, aiding the construction of 5,866 new homes thus far. Michael Strevens, Managing Director of Structured Financial Institutions at the British Business Bank, emphasised the programme’s success. “Reflecting on the volume of SME lending and the number of homes built is incredibly rewarding,” he noted. “Looking forward, we aim to be more proactive, engaging closely with lenders to understand their challenges and craft suitable solutions. This approach will guide us to our next £5bn with enhanced speed and purpose.”
Private sector entities have lauded the programme’s efficacy. United Trust Bank (UTB), the inaugural lender to pilot ENABLE Build, has dispensed over £1 billion in guaranteed lending via both ENABLE schemes. “We’ve facilitated nearly 450 loan facilities for SME housebuilders, contributing to approximately 4,700 new homes’ creation,” stated Adam Bovingdon, Head of Property Development at UTB. “ENABLE exemplifies successful cooperation between the state and private sector.”
Ravi Anand, Managing Director of alternative lender ThinCats, described ENABLE as “a crucial contributor” to the £1 billion of post-COVID funding it has generated. “The scheme delivers as promised — enabling senior bank appetite to allow ThinCats to fund growth initiatives of UK mid-sized SMEs.”
The Federation of Master Builders acknowledged the programme’s role in diversifying the housing market. “Financing is a key challenge for small developers aiming to build new homes,” said Chief Executive Brian Berry. “The ENABLE Build scheme aids the diversification needed to realise the government’s target of 1.5 million new homes.”
With the UK’s economic expansion increasingly dependent on enhancing regional productivity and SME resilience, ENABLE programmes are critical in fostering national recovery and long-term goals. The Bank plans to expand the initiative, targeting the next £5 billion milestone “with greater pace and purpose.”
For further details, read more [here](https://bmmagazine.co.uk/news/british-business-bank-hits-5bn-milestone-fuelling-regional-growth-and-housebuilding/).
