The British Business Bank has today announced that it is commissioning new, independent research on the sustainability of the CDFI sector. The report will be published in June.
Chief Secretary to the Treasury, Danny Alexander , made the announcement today on a visit to CDFI Fredericks Foundation in Oxford. The CDFA welcomes the news, which it hopes will lead to greater long-term investment in the CDFI sector.
Some CDFIs have already successfully secured commercial investment. The report will look into how the CDFI sector can build on these successes and attract more commercial investment in the future, which will provide a long-term funding option for the sector. It will draw on examples from the US, where they have a thriving community finance sector.
Ben Hughes, Chief Executive of the CDFA said:
“This is great news for the CDFI sector; for the Treasury and British Business Bank to take this initiative at such a critical time in the electoral calendar marks a real step change in support for the CDFI sector, and the thousands of people and businesses they support. It will give us a real head start in working with a new government, to create a financial services industry that has CDFIs at its heart.”
Chief Secretary to the Treasury, Danny Alexander said:
“Small businesses are the backbone of the British economy, so it’s only right that the government supports viable small businesses, particularly those struggling to access conventional finance.
To ensure we help our small businesses as much as possible, I have commissioned a report exploring how the CDFI sector can operate more sustainably. This will provide more evidence about the sector and building on this, CDFIs will be able to help even more viable smaller businesses access the finance they need to grow.”
Economic Secretary to the Treasury, Andrea Leadsom said:
This government is firmly behind small businesses – that’s why we’re looking at how we can further support the community finance sector. Community Development Finance Institutions (CDFIs) help viable businesses and social enterprises that are unable to secure lending from high street banks. They also provide help to households that need to meet unexpected expenses and might otherwise use payday lenders. Last year CDFIs created 15,000 jobs and it’s only right that we look at how we can ensure that the sector continues to thrive.”