Financial institution Close Brothers secures a guarantee transaction worth up to £300 million with the British Business Bank under the ENABLE program.
British Business Bank and Close Brothers Announce £300m Asset Finance Deal
The British Business Bank has agreed to a transaction of up to £300 million with Close Brothers under the ENABLE Guarantees programme. This deal is aimed at providing greater support to smaller businesses across the UK.
Close Brothers, a long-standing finance provider to thousands of UK smaller businesses, will use the funds to support a portfolio within Close Brothers Asset Finance. Asset finance plays an important role for UK smaller businesses, reaching a record £23.5 billion in 2024, and accounted for one-third of all UK investment in vehicles, machinery, and equipment that year.
Michael Strevens, the Managing Director of Structured Financial Institutions at the British Business Bank, has expressed his support for the transaction. He stated that the deal reflects both institutions' commitment to ensuring small businesses continue to access the finance they need, especially in tougher times.
Participating institutions in the ENABLE Guarantees programme are incentivised by a government-backed guarantee. The programme encourages additional lending to smaller businesses, allowing institutions like Close Brothers to support a larger number of firms as they look to invest in their future.
Close Brothers is an accredited delivery partner for several other British Business Bank programmes, including the Growth Guarantee Scheme and legacy schemes such as the Recovery Loan Scheme (RLS), the Coronavirus Business Interruption Loan Scheme (CBILS), the Bounce Back Loan Scheme (BBLS), and the Coronavirus Large Business Interruption Loan Scheme (CLBILS).
Asset finance enables smaller businesses to finance business critical, capital assets. The transaction will cover hire purchase, sale and hire purchase back, and leasing facilities.
The ENABLE Guarantees programme is open to UK banks, UK branches of foreign banks, asset finance providers, asset-based finance providers, and certain other categories of lenders.
Michael Strevens added that the transaction underscores the British Business Bank's mission to make finance markets work better for smaller businesses. He believes that this deal will help Close Brothers continue to provide the vital finance that smaller businesses need to grow and thrive.
The British Business Bank is pleased to support the deal that helps Close Brothers provide greater support to smaller businesses across the UK. Asset finance is a crucial tool for smaller businesses, and this deal will undoubtedly have a positive impact on the UK economy.
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