Community loan provider celebrates milestone year – with £10m lent to firms

Community lending specialist BCRS Business Loans has achieved one of its best years ever for delivering funds, with almost £10 million lent to businesses across the West Midlands, surrounding areas and Wales.

BCRS Business Loans, which provides funding to small to medium sized enterprises unable to access finance from traditional sources, has provided £9,900,502 in funding to 124 businesses during the 2024-25 financial year, representing a 68 per cent increase in the number of SMEs supported compared to the previous year.

The delivery of 50 additional loans year on year highlights the increasing demand for responsible lending among SMEs who struggle to secure funding through mainstream banking channels.

In the last financial year, lending through BCRS Business Loans has resulted in the safeguarding of 889 jobs and creation of 317 roles while adding £51.2m to the economy of the West Midlands, surrounding region and Wales.

Of the funding, 34.6 per cent went to the UK’s most disadvantaged areas.

BCRS Business Loans chief executive Stephen Deakin said: “We have been able to substantially increase our lending activity which has resulted in jobs protected, new roles created, and millions added to the regional economy.”

As a Community Development Finance Institution (CDFI), BCRS Business Loans operates as a non-profit distributing company through a story-based approach to lending, issuing loans between £10,000 and £250,000 to help grow and support recovery plans.

BCRS is an active member of Responsible Finance, the trade association for the responsible finance industry which provides finance and support to help enterprises and individuals develop and create wealth including support to disadvantaged communities.

Since BCRS Business Loans was founded in 2002, it has provided loans to businesses, with a focus on supporting entrepreneurs and businesses in economically disadvantaged areas.

The only time the lender has exceeded the latest performance was during the Covid-19 pandemic, when support funds were distributed to help businesses in the global lockdown.

BCRS Business Loans operates as a delivery partner for three investment funds launched over the last 18 months. As part of the Midlands Engine Investment Fund II (MEIF II), operated by the British Business Bank, BCRS Business Loans distributes loans ranging from £25,000 to £100,000 across the West Midlands.

Additionally, BCRS Business Loans is a delivery partner for the £62m Community Investment Enterprise Fund (CIEF). With backing from mainstream lender Lloyds, BCRS supports the delivery of the fund by providing secure loans between £25,000 and £250,000 to enable growth and recovery plans.

In Wales, BCRS Business Loans manages smaller loans through the Investment Fund for Wales (IFW), also operated by the British Business Bank, in the lender’s first expansion into the Principality.

IFW offers smaller loans from £25,000 to £100,000, debt finance up to £2 million, and equity investment up to £5 million to support Welsh businesses.

Pictured: The BCRS Business Loans team