Today’s budget included £165m of new funding for entrepreneurs currently unable to access the finance they need to thrive and grow.
The funding will be provided to small businesses across the UK through Responsible Finance members (community development finance institutions, also known as community lenders) by the British Business Bank (BBB).
The new capital will be delivered as part of an uplift to the BBB’s capacity, including a new allocation of £165 million to the Community ENABLE Funding programme (CEF) over three years.
This wholesale funding is already making a difference, with lending to start-ups and small businesses from CDFIs up by 28% in 2025, to £181m, creating more than 7,000 new jobs. Nearly nine out of ten businesses supported by CDFIs could not get finance elsewhere, but most go on to repay their CDFI finance and fuel inclusive local growth across the UK.
Theodora Hadjimichael, CEO of Responsible Finance, said:
“This is amazing news for small businesses. Our members back the startups of today and the scale-ups of tomorrow and this significant boost in funding through the British Business Bank means community lenders can reach many of Britain’s great entrepreneurs who need finance and value our support on their growth journeys.
“We’re thrilled that CDFIs’ expertise in backing and supporting entrepreneurial talent across the UK is valued and recognised – and excited to help deliver growth in every postcode.”
The announcement reflects the government’s increased understanding of the contribution that CDFIs make to the economy and to local communities, which is also expressed through its support for the Community Finance Taskforce. The Taskforce’s roadmap for the community sector is due to be published next year.
Bob Annibale, Chair of the Community Finance Taskforce, said:
“Today’s news of an additional £165 million for community lenders, delivered through the British Business Bank, is tangible evidence of the government’s continuing commitment to the sector. The Community Finance Taskforce will use this opportunity to set out an ambitious roadmap for growth when it reports early next year.”
What next?
- Read about CDFIs’ impact for small businesses in our impact report
- Read the full Budget 2026 document