BCRS passes £5mn Midlands Engine lending milestone

BCRS Business Loans has passed £5mn in lending through the British Business Bank’s Midlands Engine Investment Fund II, supporting SMEs across the West Midlands.

The community lender has delivered £5.2mn to 82 businesses since the fund launched in February 2024, supporting 237 new jobs and generating an estimated £27.5mn of economic impact in the region.

The story is regional, but relevant because it shows how non-bank lenders are being used to close funding gaps for businesses that struggle to access mainstream finance.

BCRS focuses on viable firms that are under-represented in traditional lending. According to the announcement, 21% of loans were made to ethnic-led businesses, while 15% went to female-led companies.

The Midlands Engine Investment Fund II provides debt and equity funding across the Midlands, including small loans from £25,000 to £100,000, debt finance up to £2mn and equity investment up to £5mn. BCRS is delivering the smaller loan element in the West Midlands.

For working capital markets, the key point is access. Smaller businesses often need relatively modest facilities to move premises, buy stock, invest in staff or expand into new markets.