LendInvest and British Business Bank have formed a joint venture with £100m backing from HSBC to help finance smaller property developers to provide more homes across the UK.
The transaction is supported by the state-owned bank’s Enable Guarantee programme, which is designed to encourage lenders to increase their advances to smaller businesses.
Under an Enable Guarantee, the government takes on a portion of the risk on a portfolio of loans to smaller businesses in return for a fee.
LendInvest’s 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.
LendInvest chief executive Rod Lockhart said: “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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