Let's Do Business Finance Celebrates the Positive Impact of the British Business Bank on the Community Development Finance Institution Sector
In light of the latest report from the British Business Bank and the celebration of their 10 years of supporting businesses with finance since their inception in 2014, we’re highlighting the key findings of the newest ‘Power of 10’ impact report, and the impact the British Business Bank has had on driving economic growth across the UK, as well as supporting us and other organisations in the CDFI sector.
The British Business Bank, a government owned economic development bank, is managed independently – but works closely with the UK finance sector and businesses to make finance work better, so that more businesses in the UK are supported to start up, grow, and contribute further to economic growth.
The British Business Bank provides and advocates for improved access to funding for UK businesses both big and small, as well as offers a wide range of resources and access to support to businesses no matter what stage.
Let’s Do Business Finance is an Accredited Lender and Official Business Support Partner of several of the British Business Bank’s programmes
The new Power of 10 Impact report, commemorating 10 years of the British Business Bank, is a celebration and highlight reel of all the bank and their partners have achieved. It revealed that the British Business Bank has delivered over £32 billion in combined public and private sector funding, supported 209,000 smaller businesses and facilitated the creation of 250,000 additional jobs, and has resulted in an estimated £97 billion in additional turnover and a boost to UK economic output by around £43 billion.
The Bank's activities have also contributed significantly to the Community Development Finance Institution (CDFI) sector, which has been instrumental in providing financial services to underserved communities. With the backing of the British Business Bank, CDFI’s (like Let’s Do Business Finance) have been supported in growing themselves – enabling increased funding opportunities for businesses who might have otherwise been unable to secure it.
“Congratulations to BBB on their first 10 years of impact. They have been instrumental in our successful growth over that time through the Start Up Loans Scheme, and various incarnations of loan guarantee schemes. We very much look forward to developing our work with them over the next 10 years and hopefully longer.”
Upward trend of lending from Let’s Do Business Finance over the past 5 years
CDFIs, as non-profit lenders, have been able to unlock the potential of thousands of small businesses that have been unable to access mainstream finance. The British Business Bank's support has enabled CDFIs to lend over £1 billion to small enterprises, aiding economic growth and fuelling development in economically disadvantaged areas. This has been particularly crucial in regions where traditional banking services might be limited, and ensures that small businesses have the necessary resources to thrive.
The 'Power of 10' report also highlights the Bank's commitment to sustainability and innovation, with a focus on supporting businesses will aid the UK transition to a net-zero economy. By improving access to finance for smaller businesses, the British Business Bank has played a pivotal role in driving sustainable growth and prosperity across the UK.
Let's Do Business Finance commends the British Business Bank for its unwavering dedication to supporting smaller businesses and its positive impact on the CDFI sector. The Bank's efforts have not only boosted economic activity but have also helped to create a more inclusive financial system and future for the CDFI sector by creating new avenues to access finance for businesses who struggle with traditional routes, and raising awareness of the Responsible Finance sector as a whole.
Lending statistics from the latest Social Impact Report from Let’s Do Business Finance
By creating a more inclusive and innovative financial system for UK businesses, the British Business Bank has paved the way for more traditionally underrepresented groups gain access to finance and therefore fund their business ambitions – leading to boosts in the amount of loans being awarded to female founders (40%), and 20% of total loans reportedly supporting entrepreneurs from Black, Asian or other Ethnic Minority backgrounds.
These numbers are reflected in lenders across the country, too, showing real impact in local communities – with 42% of Start Up Loans from Let’s Do Business Finance being awarded to female founders in the South and East of England.
Looking to the future, the British Business Bank is planning to innovate further – working with the financial sector to create groundbreaking initiatives that support the future of business in the UK. This includes the new Community ENABLE Funding which will support up to £150 million in additional lending until 2027, boosting the capacity of social impact lenders and enabling them to unlock more potential growth in communities across the country.
