Small business in Powys could be eyeing up a financial boost - After an ethical banking fund from Newtown has been endorsed as a lender under a government guarantee programme.

The Robert Owen Community Banking Fund(ROCBF) has been accredited under the UK Government backed Enterprise Finance Guarantee (EFG), which offers lending to viable businesses that have been turned down for a loan or other form of debt finance due to inadequate security or a proven track record.

Since its launch in 2009, EFG has supported the provision of over 30,300 facilities to a value of over £3.2bn.

It provides lenders such as ROCBF with a government-backed guarantee of 75% of the outstanding balance of eligible facilities, allowing lenders to broaden their reach to smaller businesses potentially enabling a “no” credit decision from a lender to become a “yes”.

Mark White, Chief Executive Officer of Robert Owen Community Banking Fund said the scheme would open the door for a range of businesses.

“This is a very exciting development for us and is the latest building block in our three-year growth and expansion plan," he said.

"The EFG accreditation from the British Business Bank potentially opens the door for applicants across a range of business types and activities. There is a huge, untapped pool of enterprise in Wales, and this will be an important tool in helping us unlock their potential.”

The fund says it recently launched an enhanced range of ethical loans for businesses, individuals and communities across Wales, ranging from £1000 to £50,000, are available to support a spectrum of local enterprises.

Steve Conibear, Senior Manager for Wales, UK Network at British Business Bank said, said: “The accreditation of Robert Owen Community Banking Fund shows our continued commitment to increasing the diversity of smaller business finance in the UK, including by supporting smaller lenders.

A diverse finance market means that smaller businesses may benefit from more choices and better terms that increased competition can offer. This accreditation will help ROCBF’s ability to increase lending to this important part of the smaller business finance market.”