LendInvest partners with British Business Bank to fund SME housebuilders
LendInvest has partnered with the British Business Bank to provide government-backed loans to smaller housebuilders.
The state development bank’s Enable Guarantee programme is designed to encourage lenders to increase their advances to smaller businesses. Under an Enable Guarantee, the UK government takes on a portion of the risk on a portfolio of loans to smaller businesses, in return for a fee.
HSBC is a senior funder on the development finance programme, providing up to £100m in funding. The facility increases LendInvest’s total funds under management to more than £3.6bn.
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The alternative property lender said that its development finance scheme supports smaller property developers across the UK, helping to plug the gap in the delivery of homes and alleviate the undersupply of houses.
“It is well known that there is an undersupply of housing in the UK and so we are delighted to partner with the British Business Bank and HSBC to unlock finance to help tackle this issue,” said LendInvest chief executive Rod Lockhart.
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“The UK is a nation of homeowners without enough homes to own. Smaller property developers have a key role to play in making up this shortfall. The guarantee from the British Business Bank and the funding from HSBC, combined with our expertise in lending, is key to supporting these developers.”
Reinald de Monchy, managing director, guarantee and wholesale solutions, British Business Bank, said: “Unlocking finance through this facility is a great example of the difference the Enable Guarantee programme can make in the market. Thanks to this new partnership, LendInvest will be able to help more smaller property developers build more homes across the UK.”
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