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British Business Bank announces £15m increase in Tier 2 capital funding with Allica Bank

Press release 09 June 2026

  • Allica Bank’s Tier 2 capital funding from the British Business Bank now totals £45m
  • Transaction builds on a £30m Tier 2 facility agreed in 2022
  • Facility will provide capital for up to £150m of smaller business lending.

The British Business Bank has agreed a £15m Tier 2 capital facility with Allica Bank, a full service digital bank for established small and medium-sized businesses. This builds on a £30m facility provided in 2022, bringing the total Tier 2 capital funding to £45m.

The facility will provide capital for up to £150m of additional smaller business lending.

Allica is a bank built solely to meet the needs of established businesses with 5-250 employees. Since receiving its banking licence in 2019, it has provided over £4bn of lending to over 25,000 smaller businesses, with over £5bn in deposits. 

Recently, Allica has been valued at close to $1.2bn as part of its Series D capital raise, and the British Business Bank’s support has contributed to helping Allica reach this notable milestone. 

The British Business Bank’s Tier 2 capital note investments aim to be a catalyst for recipient banks as they grow, increasing the supply and availability of finance to small and medium-sized businesses across the UK. A report last year by economic research consultancy Oxford Economics revealed that for every £1m Allica lent to established businesses, it contributed £2.4m in GDP, 35 jobs, and £600,000 in tax revenue.

Richard Bowen, Managing Director, Direct Financial Institution Solutions, British Business Bank, said:

Allica has grown substantially since our last Tier 2 capital transaction in 2022. Having a delivery partner like Allica in the UK lending ecosystem supports our mission of delivering economic growth for the UK, and we are excited that this transaction will support Allica in continuing to support its customers’ growth journeys in the future.

It’s encouraging to see the breadth of smaller businesses Allica has supported since then, as well as the work it has done representing the smaller business community, while establishing a strong brand profile.

Richard Davies, CEO of Allica Bank, said:

The extension of our partnership with the British Business Bank is another important step in backing the UK’s established SMEs – the businesses that power the real economy but are too often overlooked.

This additional capital allows us to go further and faster in supporting these businesses with the funding they need to grow, invest and create jobs. It’s a strong example of how the right partnerships can help unlock more finance for established businesses and, in turn, drive broader economic growth across the UK.

Further Information

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Notes to editors

About the British Business Bank

The British Business Bank is the UK government’s economic development bank. Established in November 2014, its mission is to drive economic growth by helping smaller businesses get the finance they need to start, scale and stay in the UK. Its remit is to design, deliver and efficiently manage UK-wide smaller business access to finance programmes for the UK government.

The British Business Bank’s core programmes support £23bn 1  of finance to almost 64,000 2  smaller businesses.

British Business Bank plc is a public limited company registered in England and Wales, registration number 08616013, registered office at Steel City House, West Street, Sheffield, S1 2GQ. It is a development bank wholly owned by HM Government. British Business Bank plc and its subsidiaries are not banking institutions and do not operate as such. With the exception of BBB Investment Services Limited they are not authorised or regulated by the Prudential Regulation Authority or the Financial Conduct Authority. BBB Investment Services Limited is authorised and regulated by the Financial Conduct Authority. A complete legal structure chart for the group can be found at british-business-bank.co.uk.  

The transaction described above does not constitute or imply any endorsement, warranty or recommendation by the UK government, the British Business Bank plc, its subsidiaries or any other party of Allica Bank or its products or services.

About Allica Bank

Allica Bank is a UK bank built exclusively for established businesses – typically those with between 5 and 250 employees – that are the backbone of the British economy, generating around a third of GDP and employment.

Acquiring its banking licence in 2019, Allica is on a mission to transform how established businesses manage their finances. It combines relationship-led banking with proprietary AI technology to offer a more powerful, more integrated and more human approach to business finance.

It’s proving to be a winning formula. Allica reached unicorn status in February 2026 and is considered the UK's fastest-growing fintech in history. Allica offers lending, current accounts and savings products designed around the real-world needs of established businesses. It has now lent over £3.7bn to established businesses and has raised over £5.7bn in customer deposits.

The bank’s ambition is to gain 10% market share by 2028 in order to help change the established SME market for the better.

Allica is authorised and regulated by the Prudential Regulation Authority and also regulated by the Financial Conduct Authority. Financial Services Register Number: 821851   

Read more at allica.bank.

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