First Enterprise launches £13m fund to tackle SME finance gap
First Enterprise has launched a new £13m lending initiative to support UK-based small and medium-sized enterprises (SMEs) that are unable to access finance from traditional banks and high street lenders.
This new fund is part of the British Business Bank’s £1.5bn Community ENABLE Funding (CEF) programme, supporting SMEs across the UK. First Enterprise is among the first Fund Managers in the UK selected to deliver this landmark initiative, which supports Community Development Finance Institutions (CDFIs) in providing fair, flexible, and affordable finance to underserved but viable small businesses.
“We’re proud to be among the first to deliver the CEF programme,” said Hassan Ahmed, Executive Chairman at First Enterprise. “This new funding strengthens our mission to support businesses excluded from mainstream finance - particularly those led by ethnic minorities, women, and other underserved groups - and significantly expands our capacity to offer flexible, timely lending to those who need it most.”
Gareth Thomas, Minister for Small Businesses, said: “This Government’s number one mission is growth. That means providing the UK’s 5.5 million SMEs with the right tools to start up, scale up and succeed, to create jobs and boost the economy as part of our Plan for Change.
“As part of this, we are determined to support the growth of community banks that want to lend to small businesses. In countries like the US, they play a key role in SME lending and have the potential to do significantly more here in the UK.
“That is why the Community ENABLE Funding programme is such an important initiative, supporting the UK’s CDFI sector.”
Daniel Carrico, Executive Director at First Enterprise, added: “This fund comes at a crucial time for the UK’s SME community. Many viable businesses continue to be held back by an inability to secure the finance they need to grow. The Community ENABLE Fund is our answer to that challenge – delivering the type of flexible, accessible funding the market urgently needs. We’re proud to be supporting the backbone of the UK economy.”
Through the programme, loans between £25,001 and £250,000 will be made available to SMEs across the UK for growth, investment, and working capital. Key to the offer is its flexibility: decisions are made by real people - often within 1 to 3 weeks - with assessments designed around each business’s true potential, not just credit scores.
The launch builds on First Enterprise’s proven track record in impact lending. In the financial year ending 31 March 2025, the organisation lent £13m to 712 small businesses across the Midlands, creating and safeguarding 1,246 jobs. Of this funding, 36% was allocated to women-led businesses, 29% to minority-led businesses, and 38% of the total lending value was directed to the lowest 35% of LSOAs in the Index of Multiple Deprivation (IMD). This lending was made possible through the management of a range of funding streams, including the Start Up Loans, Midlands Engine Investment Fund II, and the Regional Growth Fund.
Danielle Davis, Deputy Director at First Enterprise, commented: “This launch aligns with First Enterprise’s wider mission to support entrepreneurs and businesses that are often overlooked by mainstream finance. It represents a significant step forward in our efforts to create positive social impact by providing essential funding and resources to underserved communities, fostering economic growth and opportunity where it is needed most.”
The CEF programme is funded by the Department for Business and Trade and delivered by the British Business Bank. It aims to unlock up to £1bn in SME lending over the next five years through a blend of public and private capital. The £13m allocation to First Enterprise marks a key first step in rolling out the programme nationwide and advancing inclusive access to finance for the UK’s smaller businesses.