19.04.2013
Non-bank community lenders saw an increase in demand from businesses of 36% in the first quarter of 2013, according to the Community Finance Monitor survey. This bucks the trend reported in today’s Bank of England Trends in Lending report, which says demand for bank credit remained weak in quarter one, and that demand from small businesses fell.
Community lenders helped 33% more businesses in quarter one, compared to the last quarter of 2012. They supported 1,382 small businesses that were unable to secure bank credit, creating 2,031 jobs and protecting a further 1,024. This compares to a fall in the stock of UK bank lending to businesses by around £5billion.
The Community Development Finance association is the voice for UK community lenders. Chief Executive Ben Hughes commented,
“These new figures from our survey highlight that access to finance remains a challenge for small businesses. Community finance provides a much needed alternative to banks, and community lenders are doubling their efforts to create businesses and jobs in the areas where they are most needed. If the Funding for Lending Scheme and capital from the new Business Bank was extended towards community lenders we would see a major boost in lending to businesses and more importantly huge impacts on economic growth and job creation.”
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Contact: Sam Collin, Communications Manager, CDFA
020 7430 0222 x207 [email protected]
- Further data and case studies available on request.
- The Community Development Finance Association (CDFA) is the voice for providers of fair and affordable finance. Our mission is to create a thriving community finance industry, bringing social and financial benefits to neighbourhoods across the UK. We represent a national network of community finance providers. For more information about the CDFA please visit www.cdfa.org.uk
- Community lenders also known as Community Development Finance Institutions (CDFIs), are social enterprises that support communities by providing affordable finance that would otherwise not be available. By making loans, they are able to recycle this finance again and again into neighbourhoods where it is most needed.
- Community lending figures are based on the Community Finance Monitor, a survey of CDFA members and their lending activity in the first quarter of 2013.