British Business Investments, a wholly-owned commercial subsidiary of the British Business Bank, today announces a new £30m Tier 2 capital facility for challenger bank, Allica Bank.
Allica Bank has been lending to smaller businesses since March 2020, committing over £560m in loan offers in 2021 and is set to offer £1 billion to smaller businesses in 2022.
This Tier 2 facility from British Business Investments will enable Allica Bank to draw on capital as required, to support additional lending to UK smaller businesses of up to £250m.
British Business Investments aims to increase the supply and diversity of finance for smaller businesses across the UK by boosting the lending capacity of challenger banks and non-bank lenders. Since it was established in 2014, British Business Investments has committed over £3bn to providers of finance to UK smaller businesses
Judith Hartley, CEO, British Business Investments, said: “This £30m Tier 2 commitment to Allica Bank supports British Business Investments’ mission to increase the diversity and supply of finance for smaller businesses in the UK. Challenger banks like Allica help diversify the UK’s smaller business finance market and this, in turn, helps smaller businesses across the UK to access the finance they need to grow.’’
James Heath, Chief Financial Officer, Allica Bank, said: “The investment from British Business Investments will allow Allica Bank to support even more UK SMEs with funding to realise their growth potential. Our approach of relationship banking backed by modern technology, combined with this support from British Business Investments, goes a long way to serving the needs of often forgotten established SMEs.”