Cambridge and Counties Bank secures £20m BBI investment to increase lending

The funding will allow the lender to expand its lending to smaller businesses. 

British Business Investments (BBI) is the commercial subsidiary of the British Business Bank (BBB) and aims to increase the supply and diversity of finance options for UK small and medium-sized enterprises (SME) by supporting finance providers. 

It has provided more than £3.3bn to lenders since it was established in 2014. 

Cambridge and Counties Bank has been supported by the BBB since 2018, including a £100m guarantee through the ENABLE Guarantee programme where the UK government takes on a share of the portfolio risk in return for a fee. This was renewed in March 2023. 

Cambridge and Counties Bank was established in 2012 and provides lending and deposit products for smaller businesses, it lend to SMEs so they can invest in commercial premises, and to commercial and residential property investors. 

Supporting British business

Judith Hartley, CEO of BBI, said: “At British Business Investments, our mission is to increase the overall supply and diversity of finance for smaller businesses across the UK. This £20m Tier 2 facility to Cambridge and Counties Bank supports that mission and will help more smaller businesses across the UK access the capital they need to grow.’’ 

Andrea Hodgson, chief financial officer at Cambridge and Counties Bank, added: “When we were established in 2012, our aim was to create a responsible and competitive lender which had all the hallmarks of a traditional, customer-centric bank but one combined with the speed, efficiency, and innovation of a contemporary and agile institution. 

“Last year, our loan book passed £1bn for the first time, almost all of which was lent to our valued SME customer base. We greatly value our long-standing relationship with the British Business Bank and are grateful to it for its latest investment in our new Tier 2 issuance programme. As we progressively draw down on this, we will deploy the additional regulatory capital to further support our UK SME client base with their own financing and growth ambitions.”