UTB secures ENABLE Build guarantee from British Business Bank

The British Business Bank has agreed an ENABLE Build guarantee with United Trust Bank (UTB) to boost lending to smaller housebuilders in the UK.

It is the first to be issued under the ENABLE Build programme and will allow UTB to significantly increase the amount of development finance it provides to SME housebuilders.

Over its lifetime, the £250m guarantee is expected to help support the construction of over 2,700 units of new housing through the provision of over £500m of funding.

This follows UTB’s previous ENABLE Guarantee, which to date has helped support the construction of over 1,800 units of new housing and provided more than £340m of funding to SME housebuilders.

The ENABLE Build programme is designed to encourage additional lending to smaller housebuilders by reducing the amount of capital required to be held against such lending by the participating bank. 

Under the ENABLE Guarantee and Build programmes, the government takes on a portion of the lender’s risk on a portfolio of loans to smaller businesses, in return for a fee.

“I am delighted that we are once again collaborating with the British Business Bank to increase the availability of development finance,” said Harley Kagan, CEO at UTB (pictured above).

“This ENABLE Build guarantee will help us to increase our ability to support the SME housebuilding sector.

“The programme is another great example of the positive impact specialist banks and government agencies can have when they work together to achieve a common goal.”

Reinald de Monchy, managing director for guarantee and wholesale at the British Business Bank, added: “We are very pleased to announce our first ENABLE Build transaction, continuing our support for smaller housebuilders to gain access to the finance they need. 

“This will help UTB provide the extra finance that smaller housebuilders require to allow them to grow, succeed and build, while diversifying the housing market and delivering thousands of homes and jobs in the process.”

Housing minister, Christopher Pincher, commented: “Small housebuilders are vital to building the homes this country needs but too often struggle to access affordable finance. 

“The ENABLE Build programme allows lenders to fund more SME housebuilders and get more shovels in the ground.”

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