ART Business Loans lending rises as Midlands SMEs seek growth finance

ART Business Loans has reported further growth in lending to small and medium-sized businesses across the West Midlands and adjoining counties, as demand for alternative finance remains strong outside mainstream banking channels.

The Birmingham-based community lender said lending increased by 20% year-on-year during the 2025/26 financial year. The organisation provides loans of between £10,000 and £250,000 to businesses that can demonstrate a viable proposition but have been unable to secure the full finance they need from mainstream lenders.

The growth follows the allocation of £7mn under the British Business Bank’s Community ENABLE Fund, which will support loans above £25,000 to underserved smaller businesses across the West Midlands.

The additional funding expands ART Business Loans’ capacity at a time when many SMEs remain under pressure from higher costs, tight margins and cautious bank lending. Access to flexible finance can be especially important for firms investing in vehicles, equipment, staffing and working capital.

ART said more than 75% of the businesses it supports come from underserved areas and communities. Demand has been particularly strong for larger deals in sectors where businesses are looking to expand or invest alongside other funding sources.

One recent borrower is Wolverhampton-based Rockhopper Recovery & Rescue, which used ART funding to purchase additional vehicles and recruit staff to meet seasonal demand. The investment allowed the company to strengthen its roadside assistance operations and reduce reliance on external servicing and maintenance.

Since its establishment in 1997 as Aston Reinvestment Trust, ART Business Loans has lent more than £40mn to over 1,800 customers, helping create or protect more than 8,500 jobs.

The figures show how regional and community lenders continue to play a role in filling gaps left by mainstream finance, particularly for smaller firms with growth plans but limited access to traditional bank funding.