£1.9m Community Lending Boosts Welsh Firms and Jobs

Welsh businesses have secured £1.9 million in lending through a community investment fund designed to provide finance to SMEs unable to access the funding they need from traditional lenders. BCRS Business Loans provided funding to 23 businesses across Wales through the Community Investment Enterprise Fund (CIEF), helping create 117 new jobs and safeguard a further 264 roles. The lender has now completed the distribution of its allocation from the fund, which has been supporting businesses since March 2024 with loans ranging from £25,000 to £250,000.

One Welsh company to benefit is facilities management business Maid to Help Cleaning Specialists, which secured £75,000 through CIEF. The funding enabled the company to acquire a business in Mid Wales, expanding its operational footprint and capacity to deliver services across the country. The investment is also supporting its ambitions to develop longer-term partnerships and compete for larger national contracts.

The £62 million CIEF was funded by Lloyds and social impact investor Better Society Capital, alongside contributions from participating community development finance institutions. The fund is managed by Social Investment Scotland and was established to improve access to finance for SMEs that can struggle to secure funding through mainstream channels. Social Investment Scotland said the programme demonstrated the potential of funders and community lenders pooling resources to back businesses overlooked by traditional finance.

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For Wales, the latest CIEF figures mean an average of around £82,600 was lent to each of the 23 businesses supported, while 381 jobs were either created or safeguarded. It is often difficult for small enterprises to find capital through standard banking channels, which are frequently geared toward established corporations with extensive track records. Community-based funds like this one fill that gap by using different criteria to evaluate creditworthiness, allowing companies with strong local connections to secure the money they need to grow.

BCRS, which has provided finance to SMEs since 2002, expanded its operations into Wales as part of its aim to increase access to funding for smaller businesses. Across its wider operations, the lender has now provided more than £100 million in business loans since it was established. Better Society Capital said community lenders were creating routes to economic opportunity by directing investment towards businesses that might otherwise struggle to obtain growth finance.

BCRS Business Loans chief executive Stephen Deakin said the fund has positively impacted businesses across Wales and the West Midlands in a relatively short period of time. The team at BCRS Business Loans is proud to have played their part in the growth journey of so many businesses, and hope that this funding has helped unlock their potential to enable continued growth.