What began as a 16-month initiative is about to celebrate 20 years supporting businesses which might otherwise have struggled to find financial help.
Enterprise Answers, the county’s sole Community Development Finance Institution, has provided financial assistance to businesses that struggle to secure support from traditional high street lenders.
“Research showed that there was a need for alternative sources of finance in Cumbria,” says Grahame Latus, chief executive of Enterprise Answers.
Over the past two decades, the not-for-profit organisation has issued over 500 loans totalling around £21 million, which has generated an estimated economic benefit of £84 million for the region.
Grahame, a former branch and business manager for a high street bank, leads a small team with decades of expertise, assisting businesses across various sectors, enabling them to thrive and grow.
In the US, there are around 1,400 community development finance institutions, with the first established in 1994. The UK has around 60 such institutions.
Enterprise Answers offers loans ranging from £10,000 to £150,000, which are repaid with interest and agreed fees over a set period.
The key difference between a Community Development Finance Institution and a high street bank lies in the relationship between lender and client.
“If an organisation asking for a loan is seen as a marginal proposition, there’s a good chance the application may be turned down,” Grahame said.
“But that could be because the applicant doesn’t have a demonstrable track record in their business sector, or it could be there is a lack of security for the requested facility. By taking the time to understand the business, the market, and the purpose of the loan, we can offer support where others might decline.”
Enterprise Answers also connects businesses with local accountants, solicitors, business support organisations, IT experts or marketing agencies, ensuring entrepreneurs receive comprehensive support tailored to their needs.
The inability of small and medium-sized businesses to secure financial support remains a concern.
Last year, the All-Party Parliamentary Group on Fair Banking highlighted that businesses in some UK regions find it easier to access finance than others.
The North West, home to 50% of SMEs, was identified as one of the regions struggling to attract investment. Politicians agreed that CDFIs play a critical role in supporting business growth across the UK.
“I live in Penrith, and the team is based in the region, so we are very aware of what goes on in Cumbria,” Grahame noted, emphasising that while Cumbria is the core area of operation, their support extends beyond county lines and has benefitted businesses in Lancashire and beyond.
“Our priority is to offer a flexible approach to support the community we operate in,” he adds. “From agriculture to food and drink, tourism to hospitality, people like to talk to people and that fits nicely with our relationship-based approach to lending.”
As Enterprise Answers approaches its 20th anniversary and with the country getting to grips with the Chancellor’s spring statement, Grahame reflects on the future.
“The Government still has to win confidence, and I think it will be June before we really see what we’re facing once all the budget changes announce last autumn start to filter through, especially within the business community,” he said.
“However, for remote and rural businesses, there will always be a need for the kind of service we offer. Enterprise Answers continues to be a vital resource for businesses in Cumbria, demonstrating the enduring value of flexible financial support and community-focused lending.
“For an organisation set up for 16 months to still be operating 20 years on, it’s a sign others agree.”
