Community business finance provider BCRS Business Loans has lent more than £10 million to generate job creation and economic growth through the Community Investment Enterprise Fund (CIEF).
The lender has delivered £10.3 million in loans to 121 companies, creating 288 jobs and protecting a further 1337 roles while generating £52 million in added economic value for Wales and the West Midlands.
The £62 million CIEF was launched in 2024 to enable business growth and is backed by Lloyds, the first mainstream lender at scale to finance loans for delivery via socially-motivated Community Development Finance Institutions (CDFIs) such as BCRS Business Loans.
Managed by responsible finance provider Social Investment Scotland (SIS), the CIEF provides investment to businesses unable to access finance from traditional sources. BCRS Business Loans oversees the CIEF delivery in Wales and the West Midlands by providing secure loans between £25,000 and £250,000.
Through the CIEF, BCRS Business Loans aims to support businesses in communities underserved by traditional lending. To date, in Wales, BCRS Business Loans has supported 18 businesses to access CIEF funds , which has led to the creation of 75 jobs, whilst a further 167 have been safeguarded.
Among those to benefit is Wales-based luxury chauffeur company, Luxstar Ltd. BCRS Business Loans provided a £45,000 finance package to support Luxstar, as the business plans for growth following a challenging period in late 2024.
The injection of the CIEF finance has now positioned the company to pursue renewed growth in 2026, with new contracts on the horizon and plans underway to expand its team – including recruiting additional drivers to meet increasing demand.
Carl Harris, who founded the business in 2020 with eight years of professional driving under his belt, explains:
“The support from BCRS has been pivotal, and I am incredibly grateful.
“This year presents a huge opportunity for the business, and we are now in a strong position to exploit new contracts, grow our client base and create jobs as we continue to build Luxstar for the long term.”
BCRS Business Loans chief executive Stephen Deakin said:
“Passing £10 million in lending shows the growing impact we are achieving through the CIEF, helping businesses like Luxstar to grow to the next level. We want to help as many enterprises as possible through the CIEF, backing firms to create employment throughout Wales and the West Midlands.”
The CIEF aims to help 800 small firms and create 10,500 jobs in economically disadvantaged areas by using the funds from Lloyds and social impact investor Better Society Capital plus the three CDFIs taking part, BCRS Business Loans, Business Enterprise Fund and Finance for Enterprise.
The CIEF is the second to be launched and is managed by CDFI Social Investment Scotland, which has invested in the social sector since 2001. BCRS Business Loans also delivered smaller loans for the first fund.
Louisa King, Lloyds Ambassador for Wales, said:
“We are pleased to see BCRS Business Loans support 18 enterprises to realise their ambitions through the latest CIEF funding round.
“It is particularly encouraging to see more than 167 jobs safeguarded, whilst a further 75 have been created and we are committed to enhancing access to finance and ensuring that economic prosperity is shared more widely across the communities we serve.”
Delivering on its goal of ensuring no viable business goes unsupported, BCRS Business Loans is also a fund manager for the small funds pot of the £130m Investment Fund for Wales and for the Midlands Engine Investment Fund II, which will deliver £400m in funding for businesses across the Midlands.
Since launching in 2002, BCRS Business Loans has passed £100 million in total lending, generating overall £518 million in economic impact. Up to the end of April, the finance provider supported 1,594 businesses, creating more than 5,900 jobs and safeguarding 11,779 existing roles.
The most recently completed financial year was one of the best ever for BCRS Business Loans, with the lender providing £9.9m to 124 businesses, a 68% increase year on year, safeguarding 889 jobs and creating 317 roles while adding £51.2m to the economy of the West Midlands, surrounding region and Wales. Of the funding, 34.6 per cent went to the UK’s most disadvantaged areas.
Visit www.bcrs.org.uk to discover more or submit an initial application form.
