PRESS RELEASE
Tuesday 5 October
The Community Development Finance Association (cdfa) has welcomed the Government’s Enterprise Allowance scheme, announced at the Conservative Party Conference by Iain Duncan Smith this afternoon, which will provide would-be entrepreneurs with coaching, mentoring and a financial package worth up to £2000.
And the cdfa says that alternative finance providers, such as community development finance institutions (CDFIs), will be critical to the scheme’s success because of banks’ reluctance to lend to this market.
Bernie Morgan, Chief Executive of cdfa, said: “I’m delighted that the Government is providing extra support to help the long-term unemployed set up in business. Unfortunately there is still market failure by high street banks in serving this market but alternative finance providers, such as CDFIs, are part of the solution. CDFIs have been working in this space for many years, providing loans as well as coaching to businesses that the banks won’t touch. By linking up with the Enterprise Allowance scheme they can smash Mr Duncan Smith’s target of 10,000 new businesses within a year.”