In a move expected to boost lending capacity to small businesses, the British Business Bank has entered into an agreement for an initial £75 m ENABLE Guarantee with Cynergy Bank.
The agreement, which may potentially be expanded to £150m, will provide coverage for a portfolio of term loans within the commercial real estate sector, including businesses such as hotels and care homes. The added guarantee is projected to provide up to an extra £70m of lending capacity to small businesses.
Cynergy Bank, established in 2018, has been serving business owners, family businesses, and property entrepreneurs in the UK, assisting them with their financial requirements. It is a current partner of the British Business Bank under the Coronavirus Business Interruption Loan Scheme (CBILS) and the Recovery Loan Scheme (RLS) programmes.
The managing director of guarantee and wholesale solutions at the British Business Bank, Reinald de Monchy, said: “We are pleased to welcome this new ENABLE Guarantee facility with Cynergy Bank, a growing specialist bank in this sector.
“One of the British Business Bank’s key objectives is to expand the range of funding providers for smaller businesses. We look forward to continuing our strong relationship with them as a lender.”
Cynergy Bank’s CEO, Nick Fahy, emphasised the importance of small to medium-sized enterprises (SMEs) in the British economy.
He said: “SMEs are the lifeblood of the British economy. It’s crucial to ensure their needs are met to help them grow and thrive, but also to provide the right support during uncertain times.
“Cynergy Bank is proud to partner with the British Business Bank on the Enable Guarantee, which will provide more certainty to small businesses, especially during challenging times.”
