Invest Daily Pro
  • Economy
  • Investing
No Result
View All Result
  • Economy
  • Investing
No Result
View All Result
Invest Daily Pro
No Result
View All Result
Home Top News

Community lenders unlock £1bn to support small firms rejected by banks

by
December 5, 2024
in Top News
0
Community lenders unlock £1bn to support small firms rejected by banks
0
SHARES
3
VIEWS
Share on FacebookShare on Twitter

Small businesses in some of Britain’s most disadvantaged areas are poised to benefit from £1 billion in lending, thanks to a government-backed initiative by community-based finance organisations.

The British Business Bank (BBB) has launched a £150 million, two-year scheme to bolster community development finance institutions (CDFIs), which lend to businesses turned down by mainstream banks. The initiative is expected to increase CDFI lending from £102 million a year to £500 million annually by 2029, with Responsible Finance estimating the total impact to reach £1 billion as funds are recycled through loan repayments.

“This is a huge step forward,” said Theodora Hadjimichael, chief executive of Responsible Finance, which represents 50 CDFIs across the UK. “We’ve often been constrained by limited capital, but now we’ve been recognised for the good that we do.”

CDFIs focus on supporting viable businesses that can repay loans but struggle to secure funding elsewhere. Last year, 99% of CDFI borrowers had been rejected by other lenders, yet 89% of loans were repaid in full, demonstrating the model’s effectiveness.

The scheme has also attracted private sector interest, with hopes of raising an additional £100 million annually. Lloyds Bank recently partnered with Big Society Capital to invest £62 million in CDFIs, and JP Morgan Chase has committed £4 million to help community lenders upgrade their systems and improve efficiency.

Gareth Thomas, the small business minister, hailed the initiative: “CDFIs’ local know-how enables them to lend effectively when traditional banks cannot. Access to finance is a key barrier for small businesses, and this is a big step towards addressing that challenge.”

One beneficiary is Hyde Accessible Transport in Manchester, which secured a £125,000 loan from the Business Enterprise Fund, a CDFI, after being declined by mainstream banks. Founder Shaun Delaney used the funds to expand operations, tripling turnover and increasing staff to 228 employees and contractors, most of whom are local.

The programme not only provides financial lifelines to small firms but also strengthens local economies by creating jobs and fostering growth in underserved areas, reinforcing the vital role CDFIs play in Britain’s financial ecosystem.

ShareTweetPin

Related Posts

Have a taste of the perfect day in paradise with SULÀ Spirits
Top News

Have a taste of the perfect day in paradise with SULÀ Spirits

January 8, 2025
First months of 2025 likely rainy amid La Niña conditions, says PAGASA
Top News

First months of 2025 likely rainy amid La Niña conditions, says PAGASA

January 8, 2025
December inflation rises to 2.9%
Top News

December inflation rises to 2.9%

January 7, 2025
Outstanding debt hits fresh high of P16.09T
Top News

Outstanding debt hits fresh high of P16.09T

January 7, 2025
Outstanding debt hits fresh high of P16.09T
Top News

Outstanding debt hits fresh high of P16.09T

January 7, 2025
PHL end-December dollar reserves drop to $106.8B
Top News

PHL end-December dollar reserves drop to $106.8B

January 7, 2025
Next Post
High-Performance Vehicle Battery Co-Developed by FEV and ProLogium

High-Performance Vehicle Battery Co-Developed by FEV and ProLogium

Recommended

Surveillance Audit Confirms ISO 9001 Compliance for Veritek Global Ltd

Surveillance Audit Confirms ISO 9001 Compliance for Veritek Global Ltd

October 15, 2024
Top 5 Canadian Nickel Stocks of 2025

Top 5 Canadian Nickel Stocks of 2025

April 5, 2025
4 fatalities in Davao City’s tragic road mishap back home

4 fatalities in Davao City’s tragic road mishap back home

January 5, 2025
Analysts flag possible wasteful spending ahead of 2025 elections

Analysts flag possible wasteful spending ahead of 2025 elections

August 28, 2024
Revisit playbook amid prolonged tech winter in Southeast Asia, founders urged

Revisit playbook amid prolonged tech winter in Southeast Asia, founders urged

December 15, 2024
The urgency of investing in proper nutrition in the ‘First 1,000 days’

The urgency of investing in proper nutrition in the ‘First 1,000 days’

December 8, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 InvestDailyPro. All Rights Reserved.

    Disclaimer: InvestDailyPro.com, its managers, its employees, and assigns (collectively InvestDailyPro ) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice.
    The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    No Result
    View All Result
    • About us
    • Contact us
    • Home
    • Privacy Policy
    • Suspicious engagement
    • Terms & Conditions
    • Terms & Conditions
    • Thank you

    Copyright © 2024 investdailypro.com | All Rights Reserved