First Enterprise launches £13m fund to support underserved SMEs

First Enterprise has launched a £13 million lending fund aimed at supporting small and medium-sized enterprises (SMEs) across the UK that are unable to access finance from traditional banks and high street lenders. The new fund is one of the first to be delivered under the British Business Bank’s landmark £1.5 billion Community ENABLE Funding (CEF) programme.

The initiative is designed to tackle long-standing barriers to finance for underserved but viable businesses, particularly those led by ethnic minorities, women, and enterprises operating in areas of economic disadvantage. Loans ranging from £25,001 to £250,000 will be made available to support business growth, investment, and working capital needs.

“We’re proud to be among the first to deliver the CEF programme,” said Hassan Ahmed, Executive Chairman of First Enterprise. “This new funding strengthens our mission to support businesses excluded from mainstream finance and significantly expands our capacity to offer flexible, timely lending to those who need it most.”

The CEF programme is funded by the Department for Business and Trade and delivered by the British Business Bank, with the aim of unlocking up to £1 billion in SME lending over the next five years. It works through Community Development Finance Institutions (CDFIs), which specialise in providing fair and accessible funding to small businesses left out of traditional lending channels.

“This Government’s number one mission is growth,” said Gareth Thomas, Minister for Small Businesses.

“That means providing the UK’s 5.5 million SMEs with the right tools to start up, scale up and succeed. The Community ENABLE Funding programme is such an important initiative, supporting the UK’s CDFI sector.”

The fund comes at a time when many SMEs report being held back by limited access to finance, despite having viable growth plans. Decision-making under the programme is designed to be fast and human-led, with most loan applications processed within one to three weeks – a contrast to automated processes that can exclude businesses without perfect credit histories.

“The Community ENABLE Fund is our answer to that challenge – delivering the type of flexible, accessible funding the market urgently needs,” said Daniel Carrico, Executive Director at First Enterprise.

“We’re proud to be supporting the backbone of the UK economy.”

First Enterprise has a strong track record in impact lending. In the financial year ending March 2025, the organisation lent £13 million to 712 small businesses in the Midlands, helping to create and safeguard 1,246 jobs. A significant portion of this lending was directed at underserved communities:

36% of funding supported women-led businesses
29% went to minority-led businesses
38% of total lending was directed to areas in the lowest 35% of the Index of Multiple Deprivation (IMD)

The new £13 million allocation under the CEF programme builds on this impact, offering even greater reach and potential to support inclusive economic growth.

“This launch aligns with First Enterprise’s wider mission to support entrepreneurs and businesses that are often overlooked by mainstream finance,” said Danielle Davis, Deputy Director at First Enterprise. “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.”