SME4Labour News
Wednesday 11 November 2026 | Small Business
Reynolds welcomes up to £200m for small business working capital
Small business owners who rely on flexible working capital are set to benefit after the British Business Bank agreed a new ENABLE Guarantee transaction supporting up to £200 million of funding from NatWest to specialist lender Capital on Tap. Business Secretary Jonathan Reynolds said the funding “will unlock opportunity and help more of them access the finance they need to grow.”
Announced on 9 November, the government-backed guarantee enhances the funding NatWest can provide to Capital on Tap, which offers flexible working capital through a business credit card built specifically for small business owners. More than 300,000 small business customers have used Capital on Tap business credit cards for more than £40 billion of transactions in the UK.
Reynolds: ‘We want every business to have the tools they need to succeed’
Jonathan Reynolds said: “Small businesses are at the heart of our communities, creating jobs and driving growth. This new funding will unlock opportunity and help more of them access the finance they need to grow.” He added: “Our mission is to deliver growth in every postcode and we want every business to have the tools they need to succeed.”
Reinald de Monchy, Chief Banking Officer at the British Business Bank, said the deal “unlocks additional lending capacity for smaller businesses, helping them manage their working capital needs.” Capital on Tap Chief Executive Damian Brychcy said the partnership “will give us more capacity to provide the needed working capital that small business owners truly need.”
What it means for small firms
The ENABLE Guarantees programme is designed to encourage additional lending to smaller businesses: participating lenders receive a government-backed guarantee on defined portfolios of debt finance in return for a fee. As at October 2026 it had completed 23 transactions across 16 delivery partners, supporting more than £7 billion of lending. At last year’s Spending Review its capacity was increased from £2 billion to £5 billion, so the Bank can help more finance providers scale up their lending to smaller businesses and create a more diverse small business finance market.