✨ A Historic Day for CDFIs, but the Job’s Not Done ✨ Today’s announcement of these fantastic initiatives is a real milestone for the CDFI sector. The £150m Community ENABLE Funding Initiative and £4m Capacity-Building Programme are a huge step forward in supporting underserved businesses and recognising the vital role CDFIs play in driving inclusive economic growth. At Purple Shoots, we’re thrilled to see this progress. But we can’t help reflecting on the gap that still exists for many businesses—particularly those needing loans under £25,000. These are the sole traders, microbusinesses, and community-led enterprises that form the heart of our economy. Yet, they’re often overlooked. Last year, more than half (55.5%) of our borrowers had been turned away by other lenders, including the Start-Up Loan Scheme. We know that 28% of Start-Up Loan applicants are rejected outright. That leaves a significant number of entrepreneurs with nowhere to turn. This is where Purple Shoots steps in. But the truth is, as of today, we have 10 loans ready to go—loans that could change lives, create jobs, and spark growth in our communities. And yet, we simply don’t have the lending capital to meet the demand and disburse the loans. While we celebrate this incredible news for loans above £25,000, we also want to shine a light on the need for funding at the smaller end of the spectrum. Microbusinesses and sole traders are small businesses. They deserve the same opportunities to thrive. We’re committed to filling this gap, but we can’t do it alone. We need the backing of partners and funders who believe, as we do, that every business—no matter how small—deserves a chance. 💜 Let’s celebrate this momentous day while continuing to work for a system that truly works for everyone. #CDFIs #Microbusinesses #InclusiveFinance Responsible Finance #SocialInvestment #ImpactInvestment Fair4All Finance British Business Bank
✨A historic day for CDFIs✨ Double boost for small business finance: Unlocking finance and empowering growth across the UK This morning, at the Responsible Finance Member Day, two new programmes that will support CDFIs (Community Development Finance Institutions) were announced - a £150 million initiative from British Business Bank and a £4 million initiative from JPMorganChase. Our CEO Theodora Hadjimichael said, “We are delighted to announce this support from our valued partners. This package of lending capital from the British Business Bank and operational funding from JPMorganChase means that CDFIs can grow to turn the tide on the funding struggles that many small businesses around the country face.” 🌟 Key Highlights: £150m Community ENABLE Funding Initiative: Backed by the British Business Bank, this programme aims to catalyse up to £150m of lending over the next two years, helping CDFIs provide much-needed loans to small businesses across the UK. The programme is for loans to SMEs of more than £25,000 and will be delivered through accredited CDFIs. £4m Capacity-Building Programme: Supported by JPMorganChase, this initiative will strengthen CDFIs’ operations, enhancing their ability to deploy small business loans efficiently and scale their impact. 📈 These programmes will help CDFIs grow lending to businesses from £102 million in 2023 to £500 million annually by 2029, unlocking over £1 billion in additional finance for 15,000 small businesses in the UK’s most disadvantaged areas. CDFIs already make a huge difference to SMEs, with 98% of their loans supporting businesses outside London and under-represented groups with 41% of loans to women-led and 24% to ethnic minority-led enterprises. We’re delighted to see this support for CDFIs to scale their impact even further by backing underserved businesses and stimulating economic growth across the UK. 😍 This is a momentous day for the CDFI sector. We're proud of all of our members’ impact and the incredible work they do in their communities that has gotten us to this point. 🔗 Read the full article here: https://lnkd.in/euwFzhzQ 👉 Repost and help us share this exciting news. #SMELending #CDFIs #ResponsibleFinance
