Cambridge & Counties Bank secures £100m guarantee facility

Specialist business lender Cambridge & Counties Bank has secured a £100m guarantee facility through the British Business Bank's ENABLE Guarantee scheme, with the option of extending this to £150m in the future.

This builds on a separate facility secured in May 2018, which the bank has used to help a range of UK businesses over the past five years.

The ENABLE Guarantee programme is designed to encourage banks and other lenders to increase their lending to smaller businesses by reducing the amount of capital or junior funding required for such lending.

Under an ENABLE Guarantee, the UK Government assumes a portion of the risk on a portfolio of loans to smaller businesses, in return for a fee. When working with non-bank financial institutions, this risk portion typically aligns with any senior funder.

This transaction will also include support for small business residential landlords who want to improve the Energy Performance Certificate ratings of properties through measures such as effective insulation.

Reinald de Monchy, managing director of guarantee and wholesale solutions at the British Business Bank, said: “We’re pleased to be announcing this additional ENABLE Guarantee facility with Cambridge & Counties Bank, which has shown its ability to help smaller businesses grow and succeed as well as help to reduce regional imbalances across the UK.

“As well as fitting well with the British Business Bank’s objective of supporting the UK’s transition to a net zero economy, this will also support tenants at a time when their energy bills are a top priority for them.”

Mike Hudson, chief risk officer at Cambridge & Counties Bank, added: “We’re delighted to be continuing our relationship with the British Business Bank and our support for the Government’s ENABLE scheme, which has a great track record of delivering positive outcomes for businesses. As sustainability and related issues have risen up the corporate agenda, including at Cambridge & Counties Bank, we are highly supportive of its ambition to help businesses transition to net zero.”