Impact Policy Tracker Policy

Community ENABLE Funding (CEF) programme



The British Business Bank's Community ENABLE Funding Programme is an initiative aimed at enhancing the UK's social impact lending ecosystem by empowering Community Development Financial Institutions (CDFIs) - not-for-profit lenders that play a crucial role in providing debt finance to small and medium-sized enterprises (SMEs) that are often underserved by mainstream financial institutions - with a support of up to £150m (USD200m) for lending. The programme is divided in two phases: in the first, the Department for Business and Trade will supply the full funding through the Bank, allowing CDFIs to extend more finance to smaller businesses; in the second, the Bank will seek to attract private sector investment, using the government-backed capital to unlock additional wholesale funding and expand the programme’s reach. The programme seeks to grow CDFI lending to businesses from USD 135m to over USD 1,3bn per year by 2029, unlocking an extra USD 1,3bn for 15,000 SMEs in the UK’s most disadvantaged areas.

Highlights

  • Focus on underserved communities: with a strong emphasis on inclusion, the programme is designed to support underrepresented groups such as women and ethnic minority entrepreneurs, who receive a disproportionately low share of mainstream business finance despite their strong presence in the UK’s small business ecosystem.

  • Public-private partnership: in addition to its second phase, which will source additional funding from the private sector, the programme includes £4m (USD 5,3m) in funding by JPMorganChase to support “Building Foundations, Accelerating Growth”, a capacity building initiative led by Responsible Finance, the organisation representing the UK’s responsible finance industry. The initiative aims to strengthen the operational capacity of CDFIs by improving their efficiency, expanding their reach, and supporting innovation, staff development, and investor engagement to scale inclusive SME lending.

Government’s Role:
Market Participant


Country:
United Kingdom

Policy Type:
Funding Programmes

Year: 2024

Responsible Institution:
British Business Bank, Department for Business and Trade

Additional information:
Request for Proposals under the Community ENABLE Funding Programme

Funding Programmes

What are funding programmes?

Funding programmes - which provide financial resources in the form of grants, loans, equity, and guarantees - can be used by governments and public institutions to address financing gaps and attract private sector participation, often through dedicated funding windows, government-backed funds, and public-private partnerships, towards businesses that place social and/or environmental impact at their core. By doing so, they help grow a pipeline of mission-oriented organisations capable of addressing systemic challenges while contributing to inclusive and sustainable economic development.

This support can take various forms: capital provided directly to enterprises to meet early-stage or growth financing needs; investments channelled through intermediary funds to reach a broader range of businesses; or blended finance models where public or philanthropic actors absorb higher risks to make investments viable for private investors. The design of these mechanisms is often catalytic, helping to build investor confidence, promote financial inclusion, and strengthen the resilience of social enterprises across diverse sectors and geographies.