14 June 2022: 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.”
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British Business Investments is the trading name of British Business Investments Ltd, a wholly-owned commercial subsidiary of British Business Bank plc, the UK government’s economic development bank. It forms part of the British Business Bank’s commercial arm.
British Business Investments aims to earn a commercial return by investing – through finance providers – in smaller businesses and small mid-caps, pursuing investments on a fully commercial basis without receiving any economic advantage from the government. Find out more at bbinv.co.uk.
British Business Bank plc and its subsidiary entities are not banking institutions and do not operate as such. They are not authorised or regulated by the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA). A complete legal structure chart for British Business Bank plc and its subsidiaries can be found on the British Business Bank plc website.
The funding from British Business Investments to Allica Bank does not amount to any endorsement or warranty from British Business Investments, the British Business Bank plc, or the government of the UK.
Recently named by The Times newspaper as one of the UK’s Top 20 financial technology (fintech) companies, Allica Bank is dedicated to serving and supporting small and medium businesses and empowering them to succeed. Allica combines modern, powerful technology with local relationships in the community to deliver expert banking for businesses in Britain.
Allica received its full banking authorisation in September 2019 and opened its doors to SME lending in March 2020. The bank offers businesses market-leading lending products including commercial mortgages and asset finance, as well as a range of business and retail savings products and services, with plans to launch a new SME business account in 2022.
Allica Bank is authorised by the Prudential Regulation Authority, and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Financial Services Register Number – 821851.Back