A new agreement between the British Business Bank and Rural Asset Finance is set to unlock around £120 million in funding for smaller rural and agricultural businesses across the UK. The deal, part of the Bank’s ENABLE Guarantee programme, is expected to significantly expand access to competitive finance in the sector.

The facility is being supported by funding from NatWest Bank and BCI Capital, with the British Business Bank guaranteeing a portion of NatWest’s contribution. The agreement also includes sustainability-linked incentives that could lower borrowing costs if environmental performance targets are met.

Michael Strevens of the British Business Bank said the transaction “builds on the work we have done through the ENABLE Guarantees programme,” and is designed to improve funding access for non-bank lenders like Rural Asset Finance. He added that linking pricing to sustainability goals could lead to “further expansion of small business lending in sustainable areas, including farm renewable energy installations.”

Rural Asset Finance, established in 2019, specialises in providing tailored finance solutions to UK farmers and rural enterprises, combining asset finance and business loans to support modernisation, diversification, and sustainability efforts.

Matthew Smart, Managing Director of Rural Asset Finance, described the new facility as a “highly competitive offering” that puts the company in a strong position to support both advanced food production and alternative income strategies. “Food production and diversification on UK farms are key to ensuring a healthy, robust future for the industry and the wider rural economy,” he said.

NatWest Bank, a key funding partner, emphasised the strategic value of the initiative. Matthew Whittle, Relationship Director at NatWest, said the ENABLE Guarantee would “help unlock capital, reduce costs and ultimately increase access to competitive funding for agricultural and rural businesses.”

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BCI Capital’s Will Haynes echoed the importance of supporting specialised lenders. “Rural Asset Finance plays a crucial role in enabling growth and resilience across the UK’s agricultural and rural business landscape,” he said, adding that the partnership reflects BCI’s commitment to underserved sectors and sustainable growth.

The ENABLE Guarantee scheme, administered by the British Business Bank, is designed to encourage increased lending to small and medium-sized enterprises by allowing lenders to reduce the capital needed to support such loans, with the UK Government taking on part of the risk.