A proposal to use £200m of fines on banks and payday lenders to support community finance organisations such as credit unions has today been launched by the national community organising charity Citizens UK. The idea, which is supported by the Archbishop of Canterbury’s Task Group on Responsible Credit and Savings, would see the creation of a Community Finance Foundation to help ethical alternatives to high-cost credit expand their reach and improve their sustainability. It is estimated that over the next five years such a venture would help 500,000 people avoid high-cost credit, saving them over £200m per year in interest and fees and reducing the cost of problem debt on wider society by £1.4bn. Continue reading
Category: News
CDFA welcomes Government support for a sustainable future for CDFIs
The British Business Bank has today announced that it is commissioning new, independent research to facilitate a report on the sustainability of the CDFI sector. The report will be published in June. Continue reading
Green, gourmet and graveyard businesses announced as finalists for Microentrepreneur of the Year Award
A renewable energy firm, a luxury chocolate shop and an innovative management system for graveyards are among the businesses announced as finalists for this year’s UK Citi Microentrepreneurship Awards. The national awards scheme celebrates innovative and growing businesses that have taken off with the help of alternative finance from community lenders (known as CDFIs). Continue reading
Alternative lenders inject half a billion pounds into UK economy
Community-focused alternative lenders have contributed over half a billion pounds to UK GDP, according to new research from the CDFA, released today. The lenders have responded to increased demand for non-bank finance, and in the process helped to create 11,500 new businesses, supported over 20,000 jobs and aided 42,000 people avoid high-cost credit. Continue reading
Making things better: bringing equality to financial services
Ben Hughes on how we can bring equity to the provision of financial services in the UK Continue reading
CDFIs generate £100m of ‘extra value’ for the local economy through RGF
Community lenders have generated over £100m in ‘extra economic value’ through a government-backed fund supporting small businesses and social enterprises in England.
Figures from the Community Development Finance Association (CDFA) have revealed that loans made by its members have delivered economic value worth more than five times the original funding [1].The funding has already secured over 2,600 jobs for English towns and cities, creating substantial benefits for the government and local economies.
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Big news for Scotland’s social entrepreneurs
David Cousland explains why DSL Business Finance and Big Issue Invest are teaming up to bring finance to Scotland’s social enterprises Continue reading
Peak payday has passed – what next?
Niall Alexander of Moneyline discusses the implications of an interest rate cap for payday lenders Continue reading
Bank referral legislation is welcome news for SMEs
The CDFA welcomes George Osborne’s announcement that the Government will introduce legislation that will require banks to refer decline customers to alternative providers. The proposed new rules mean that high street banks will have to offer to connect SMEs that they decline for loans to alternative sources of finance. Continue reading
CDFA maps out how affordable credit can be available to all
Affordable credit should be accessible to everyone in every community across the UK, and the CDFA has set out how this vision should be realised. In its Just Finance report, published today, the CDFA maps the six steps that are needed to ensure we all have this basic right – of access to fair finance. Continue reading