Commercial Finance
Lenders looking to join government-backed funding scheme for small builders
A scheme offering up to £1bn in loans to boost small and medium-sized builders will begin shortly, the government has said.
The government revealed that as well as applications from interested builders, it has also received interest from specialist and mainstream lenders who want to be involved with the scheme.
The Enable Build programme was first announced in the Budget in 2018, and opened to applications from interested parties in May last year.
The idea is that the British Business Bank will guarantee loans offered to small, independent construction businesses that are looking to build new homes, in a bid to encourage additional lending.
Robert Jenrick MP, the housing secretary, said that small housebuilders have a vital role to play in delivering the homes needed across the country, but they too often struggle to access affordable finance.
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He continued: “Today I am giving the green light to a scheme that will help to fix this. Supporting £1bn of new loans so that local builders can kickstart building, level up the country and turbocharge the housing sector.”