Jobs boosted by ‘community finance’
25.04.2013
Hull-based caravan manufacturer, Atlas Leisure Homes, is one of the many UK SMEs unable to get a bank loan. The business needed a loan to buy plant and machinery to sustain and grow its operation, and secure the jobs of its workforce.
The directors were put in touch with the Acorn Fund, its local community development finance institution (CDFI), and got the loan it needed. The business has been profitable every year since, and expanded its workforce from 60 to 120.
Andrew Innes is Commercial Director and commented:
“There is a sizeable caravan industry in Hull and it had been through a calamitous period. For every 60 jobs we created there is probably another 60 jobs created through the supply chain in the local area.”
“Without the Acorn Fund quite honestly we wouldn’t have got the business operational. They gave us invaluable support at a time when it was very stressful for employees, and the business was uncertain.”
Atlas Leisure Homes isn’t the only business turning toCDFIs. Last year CDFIs, which provide an ethical alternative to high-street banks, helped 2,600 businesses across the UK and created and saved 8,300 jobs.
New research from the Community Development Finance Association (CDFA), the trade body for CDFIs, shows that demand for CDFI loans has doubled in the last two years and has now hit almost £1 billion.
Ben Hughes, Chief Executive of the CDFA, said:
“While Bank of England lending figures show that banks are lending less and less to SMEs, CDFIs have continued to increase lending – helping 45% more customers year on year. They are boosting local economies at a crucial time for the UK and are providing loans and support to businesses where banks have moved away.”
“By creating jobs and nurturing new businesses CDFIs are quietly changing people’s lives. Today we are launching our flagship publication, Inside Community Finance, which demonstrates that CDFIs have never been more needed, and are a vital part of the financial landscape.”
Inside Community Finance, supported by Unity Trust Bank, is available here.
Peter Kelly, executive director of Business development at Unity Trust Bank said:
“As both a social enterprise ourselves, and the leading provider of sustainable finance to CDFIs, Unity Trust bank is really encouraged by the growing confidence in alternative finance. CDFIs play a vital role in providing finance and support to those individuals and businesses whose access to mainstream banks is limited. This report shows that demand is increasing, and through our ongoing support for CDFIs we will continue to promote fair lending, job creation and economic prosperity in communities around the UK.”
Ends
- 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 CDFIs. For more information about the CDFA please visit www.cdfa.org.uk
- 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.
- Unity Trust Bank is a specialist bank for civil society, social enterprises, CICs, councils, and trade unions. It supports customers with socially responsible banking services. And because it is a social enterprise in its own right, the bank understands the sectors its customers work in. For more information, visit: www.unity.co.uk
- 4. For more information about Atlas Leisure Homes see http://dev.cdfa.org.uk/about-cdfis/case-studies/supporting-jobs-and-the-hull-economy/ Or visit http://www.atlasleisurehomes.co.uk/