Member Article

BCRS Business Loans passes £1m landmark for CIEF investment in growth and jobs

Community lender BCRS Business Loans has reached another landmark in generating economic growth and job creation by passing £1m in lending on behalf of the latest Community Investment Enterprise Fund (CIEF).

The Wolverhampton-based company has achieved seven figures in loans delivered for the second CIEF, which was launched in March and backed by Lloyds Bank, the first mainstream lender at scale to finance loans for delivery through socially motivated Community Development Finance Institutions (CDFIs) including BCRS Business Loans.

In total, £1.07m in loans was delivered to 16 businesses, creating 37 new jobs and protecting a further 177 roles while generating £7m in economic impact for the West Midlands and Wales, with 68 per cent of the funds going to companies in economically disadvantaged areas and a further 56 per cent supporting people classed as economically disadvantaged.

The new £62m CIEF offers investment to businesses unable to access finance from traditional sources. BCRS Business Loans supports the CIEF delivery in the West Midlands and Wales by providing secure loans between £25,000 and £150,000 to enable growth and recovery plans.

Birmingham-based dental practice NN Private was the first firm to secure CIEF funding when it received £50,000 in investment to purchase a new laser to offer a pain free alternative to soft and hard tissue procedures such as fillings and the removal of tongue and lip ties.

NN Private owner Dr Naveen Nagarathna said: "The purchase of the dental laser has provided the practice with a huge point of difference in terms of pain management. The funding and support from BCRS has been second to none and we are grateful that we can now grow the business whilst we continue to offer our patients exceptional dental treatment." 

Independent tearoom, bar and kitchen 1000 Trades On The Park opened premises at Grade II-listed Lightwoods Park and House in Bearwood after receiving investment, including a £70,000 CIEF loan from BCRS Business Loans.

Following the success of 1000 Trades, a bar in Birmingham’s Jewellery Quarter, owners Jonathan Todd and John Stapleton launched the Bearwood venture, backed by executive head chef Dan Lee who won BBC TV’s MasterChef Professionals in 2021.

1000 Trades co-owner John Stapleton said: “Having not been able to access finance from mainstream bank routes we have been able to realise our growth plans thanks to the CIEF loan, delivered by BCRS Business Loans working with ART Business Loans. 

"Our dream of turning premises which were previously a café and tearoom into a bar restaurant have allowed us to create up to 15 jobs and expand our business into a new community where we hope to succeed." 

Funded by Lloyds Bank, along with social impact investor Better Society Capital (BSC) and contributions from the three participating CDFIs, BCRS Business Loans, Business Enterprise Fund and Finance for Enterprise, the new CIEF aims to invest in 800 small businesses nationally and support 10,500 jobs.

The latest fund for small businesses operating in economically disadvantaged areas, which follows a successful first phase of CIEF funding, is managed by Social Investment Scotland (SIS), which has been investing in the social sector since 2001 and is itself a CDFI. BCRS Business Loans delivered loans during the original CIEF programme.

BCRS Business Loans chief executive Stephen Deakin added: “Everyone at BCRS Business Loans is delighted to hit the ground running with the new CIEF by delivering more than £1m in a short period of time.

“Having broken new ground by attracting funders including Lloyds Bank, the new CIEF allows CDFIs like us to help growing companies in some of the UK’s most economically challenging region provide jobs, positive social impact and economic growth.”

Alastair Davis, CEO, Social Investment Scotland said: “Congratulations to BCRS Business Loans on making an immediate impact with the new CIEF which, like the original fund, provides evidence that investing in under-served communities and place-based approaches are both possible and credible.”

Andrew Asaam, West Midlands Ambassador at Lloyds Banking Group, said: “We are pleased to see such a varied range of businesses benefit from our recent investment in CIEF, with thanks to BCRS Business Loans who've been instrumental in enabling owners to access funding to create economic opportunity.”

Victoria Crisp, Investment Manager at Better Society Capital, added: “Better Society Capital is pleased to see the progress made by BCRS Business Loans in ensuring CIEF investment is put to use through investment opportunities to help small enterprises prepare for growth.”

The delivery of CIEF investment comes after BCRS Business Loans was named as a fund manager for the £130m Investment Fund for Wales and the Midlands Engine Investment Fund II, which is delivering a £400m commitment of new funding for businesses.

Since BCRS Business Loans was set up in 2002, it has provided loans worth more than £85m to businesses. A social impact report for the last financial year showed BCRS lent £6.5m to 72 businesses, safeguarding 999 jobs and creating 473 roles, adding £33.7m in value to the economy of the West Midlands and surrounding regions.

This was posted in Bdaily's Members' News section by Osborn Communications .