Monday 1 November
In a sign of our lobbying success, the Government has this morning stated that it “recognises that CDFIs can play an important role” in helping enterprises to flourish in disadvantaged areas. As a direct result of the representations we have made to ministers and officials over recent months it says it will now look at ways of increasing its support for the sector.
In its formal response to its Financing a Private Sector Recovery consultation, the Department for Business, Innovation and Skills (BIS) stated that it is:
• considering changes to Enterprise Finance Guarantee to focus on smaller, higher risk businesses
• contributing to the EU’s PROGRESS microfinance facility – which forms the basis of the new wholesale loan fund cdfa is developing
• developing the Big Society Bank, which will be established in Spring 2011
• considering the future of the Community Investment Tax Relief scheme.
The measures are a reflection of the work we have been doing with the new Government since the election to highlight the important role CDFIs have to play. There is still work to be done to secure the full support the sector needs from central Government, the banking sector and other stakeholders. But today’s recognition is a significant move forward – and we are pleased to see that our lobbying is paying off.
Read the full document at www.bis.gov.uk/businessfinance.