£17.5m fund aims at South West firms the banks say no to

Plenty of small businesses in the South West have a solid plan, a decent order book and a bank that still says no. A new £17.5m allocation is designed for exactly those firms.

The British Business Bank has allocated £17.5m to SWIG Finance to support underserved smaller businesses across the South West of England, with loans ranging from £25,001 to £250,000.

Who SWIG Finance are

SWIG Finance is a Community Development Finance Institution (CDFI), a regional social impact lender that provides debt finance and support to smaller businesses that struggle to borrow from mainstream lenders.

The organisation was established in 1992 to raise and provide gap finance for local businesses for the purpose of economic development. It operates as a not-for-profit social enterprise focused on bringing social and economic benefits to people, places and the business community in the South and West Country.

Since April 2009, SWIG Finance has invested more than £116m in 5,736 businesses. That lending has created and safeguarded 10,484 jobs and contributed £448.1m to the South and West Country economy.

The Community ENABLE Funding programme

The allocation comes through the British Business Bank’s Community ENABLE Funding programme, which increases the availability of funding to social impact small business lenders so they can pass it on to businesses in their own communities.

SWIG Finance is the seventh CDFI lender accredited under the programme, and the first with a dedicated focus on the South West. One of the programme’s key objectives is to develop the CDFI sector across the UK, and it is expected to support up to £150m of lending over its first two years.

CDFIs tend to have strong local knowledge of the businesses they back and the communities those businesses sit in, which puts them in a position to remove some of the barriers to finance that hold firms back.

What they say

Blair McDougall, Minister for Small Business, said: “No business with the ambition and ability to grow should be held back because they can’t access the finance they need. That’s why this investment matters.

“By supporting community lenders with deep local knowledge, we are breaking down barriers to finance for underserved businesses across the South West, to ensure more entrepreneurs have the opportunity to start, scale and succeed.”

Reinald de Monchy, Chief Banking Officer at the British Business Bank, said: “The South West of England is a region rich in untapped potential, and it deserves a diverse and thriving small business ecosystem so that talent, jobs and investment can flourish locally. SWIG Finance already play a vital role in helping to achieve that ambition and welcoming them as the Community ENABLE Funding programme’s 7th accredited lender marks an important further development for the region.

“SWIG has been a trusted lender in the South West for over three decades, and we look forward to seeing the impact they will deliver to smaller businesses across the region through this facility.”

Matt Wilde, Managing Director of SWIG Finance, said: “This is a major milestone for SWIG Finance and the small business communities we are here to support.

“This allocation gives us the scale and long-term confidence to expand our lending and increase our impact. It will enable us to support more viable businesses, create and protect jobs, and ensure finance reaches entrepreneurs with strong plans and potential, especially where mainstream funding is harder to access.”

Matt added: “The South West has huge economic potential, from rural and coastal communities to towns and cities. Our role is to help unlock that potential by providing finance that is practical, accessible, and tailored to the needs of the communities we serve.

“Having worked with the British Business Bank to deliver a range of funds over the years, including Start Up Loans, the South West Investment Fund, and the Growth Guarantee Scheme, we are proud to continue our partnership through the Community ENABLE Funding programme and excited about the impact it will have on small businesses across the region.”

📷SWIG's Senior Management Team