First Enterprise launches £13m fund to support underserved UK SMEs

In a landmark development for UK small and medium-sized enterprises (SMEs), First Enterprise has announced the launch of a new £13m lending initiative. This effort is part of the British Business Bank’s £1.5bn Community ENABLE Funding (CEF) programme, designed to offer financial support to viable businesses that struggle to access traditional banking services.

The CEF programme empowers Community Development Finance Institutions (CDFIs) to deliver fair, flexible, and affordable funding. First Enterprise stands among the first selected fund managers in the UK tasked with delivering this impactful initiative.

With a longstanding mission to champion entrepreneurs excluded from mainstream finance—particularly those from ethnic minority backgrounds, women-led businesses, and other underserved groups—First Enterprise views this new fund as a major expansion of its capacity. The organization aims to offer timely, human-centered lending decisions that focus on potential rather than just credit scores. Loan approvals, typically made within one to three weeks, are tailored to the specific realities and needs of each business.

This strategic move aligns closely with the government’s broader goal of economic growth. Supporting the UK’s 5.5 million SMEs is central to this vision, with a particular emphasis on bolstering community banks that can address financing gaps. Drawing inspiration from countries like the United States, where community banks play a pivotal role in SME development, UK policymakers hope to replicate similar success.

First Enterprise believes that this initiative could be transformative for SMEs currently held back by limited financial access. The fund is positioned to address an urgent market need for flexible and accessible funding, ensuring that promising enterprises are not hindered by structural lending barriers.

Loans ranging from £25,001 to £250,000 will be offered across the UK, targeting growth, investment, and working capital needs. These funds are part of a broader impact lending strategy. In the financial year ending March 2025, First Enterprise lent £13m to 712 small businesses in the Midlands, supporting 1,246 jobs. A significant proportion of this funding reached women-led businesses (36 per cent), minority-led enterprises (29 per cent), and those in economically disadvantaged areas (38 per cent).

The initiative underscores First Enterprise’s commitment to positive social impact, economic inclusion, and sustainable business development, with hopes of unlocking up to £1bn in SME lending over the next five years.