Midlands-based ART Business Loans named fourth community ENABLE partner

ART will be allocated up to £7m under the programme to provide loans above £25k, unlocking capital for underserved smaller businesses across the West Midlands, providing jobs, growth, and opportunity.

The borrowers provided with these loans are expected to include businesses located in disadvantaged areas, those who have less awareness of the finance options available to them, or businesses declined by traditional finance routes, such as high street banks.

In addition, the programme seeks to target underrepresented groups, such as female and ethnic minority led businesses, raising the diversity of businesses in those areas and improving the local small business ecosystem. 

The programme works by increasing the availability of funding to social impact SME-lenders, and in turn the smaller businesses they serve in local communities. It is aimed at Community Development Financial Institutions (CDFIs), and will provide a significant boost to the sector, supporting up to £150m of lending over its first two years.

CDFIs are regional, social impact SME-lenders that provide debt finance and support to underserved smaller businesses, which may find it difficult to access finance from mainstream lenders. One of the key objectives of the programme is to help develop the whole sector, so many more such businesses can access the finance they need.

CDFIs typically have strong, local knowledge of the smaller businesses they support and the communities they reside in. As such, they are well placed to provide the right finance which can unlock the potential in those communities. Through this knowledge, they can help remove barriers to accessing finance experienced by businesses in their area, in this case the West Midlands.

Founded in 1997, ART helps ‘alleviate poverty through enterprise’ by lending to businesses unable to access the finance they need from mainstream finance providers.

Originally set up in Aston, ART (Aston Reinvestment Trust) was one of the first CDFIs created in the UK and has lent over £37m to more than 1,800 customers, enabling them to create or protect more than 8,500 jobs.

Since 2017, 54% of ART’s lending has been in the 35% most deprived areas of England.

Blair McDougall, Minister for Small Business and Economic Transformation, said: “Small businesses are the engine of our economy, but too often they lack the finance they need to reach their full potential. 

“This is particularly the case for those in disadvantaged areas, which is why we’re supporting the growth of organisations like ART that lend to underserved smaller firms. This helps in creating jobs, opportunities, and growth for the local economies in areas like the West Midlands.”

Reinald de Monchy, Chief Banking Officer, British Business Bank said: “We are delighted to welcome ART Business Loans as the fourth accredited lender under the Community ENABLE Funding programme. Having a CDFI with the established heritage that ART have in the West Midlands on board is great news for the Bank and the CDFI sector. We look forward to seeing the impact they will have on smaller businesses across the region.”

Steve Walker, Chief Executive, ART Business Loans said: “ART is proud to be the fourth CDFI lender in the UK to be accredited under the Community ENABLE Funding programme. This accreditation strengthens our ability to increase our levels of support to businesses, giving them access to the finance they need to grow, create jobs, and build resilience.

“Over 75% of the businesses we have helped are from underserved areas and communities, and this aligns closely with the British Business Bank’s wider mission to improve access to finance for underserved entrepreneurs across the UK.”