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We are the voice of the Responsible Finance industry
Soaring to new heights:
Where growth meets inclusion
In 2024 CDFIs lent a record amount to businesses, social enterprises and people, fuelling inclusive economic growth and fostering financial resilience.
2024: the year the sector soared to new heights
2024 was a landmark year. We collaborated with stakeholders across government and industry, boosting the UK CDFI sector to drive economic growth, tackle financial exclusion and improve lives:
- We launched two major initiatives to expand lending for small businesses: the British Business Bank’s £150 million Community ENABLE Funding programme and a £4 million capacity building initiative supported by JPMorganChase.
- We were appointed to the Government’s Financial Inclusion Strategy subcommittee on access to affordable credit, represented by our board member Tim Rooney, CEO of CDFI Salad.
- We continued our pilot exploring the use of first-loss funding to help CDFIs scale, a project which is enabled by a £600,000 grant from City Bridge Foundation.
- Investment through Community Investment Tax Relief grew significantly, increasing from £13.1 million in 2023 to £63.4 million.
- We supported CDFIs in delivering innovative projects to improve customer outcomes with £400,000 in funding from NatWest Group.
Building thriving places and stronger local economies
Small business lending that champions local growth
Every year, hundreds of thousands of promising businesses aspire to launch and grow, yet many face barriers to financing. CDFIs break down these barriers and drive inclusive economic growth.
In 2024 CDFIs lent £141.6m to 5,825 enterprises, of which:
were ethnic minority-led businesses
were women-led
businesses
were businesses previously declined
were in the UK's most disadvantaged areas
Customer Story: Selling handmade walking sticks worldwide
“I needed a walking stick, but nothing reflected ‘me’ in the walking sticks I was seeing. So I made my own, then launched my business in 2013.”
Lyndsay’s business creates bespoke walking sticks. She used her own savings to finance the firm, then ploughed everything back to grow it.
In 2023 Lyndsay wanted to create a hub where customers could try sticks in person. An advisor introduced her to a CDFI, the Business Enterprise Fund (BEF).
“BEF were amazing: very interested in what we do and who we help. The Hub is a magical place and BEF helped create it.” Now Neo Walk has ten employees and customers in 35 countries.
Microlending that transforms lives and local economies
Many lenders can’t support people who have been vulnerable, unemployed, ill, are refugees with the right to work, are former prisoners, or don’t have good credit scores.
A group of specialised CDFIs provide mentoring, grants and loans to enable people to become self-employed, launch a business or return to work.
In 2024 they lent over £537,994, of which:
hadn’t been able to access finance elsewhere
were made to women entrepreneurs
were in the UK’s 35% most disadvantaged areas
was the average microloan size
Customer story: Homeland Delicacy
Ada Uchegbu is the chef and founder of Homeland Delicacy. She used to cook West African takeaways from home but was offered the chance to be part of Europe’s largest purpose-built food hall. But she needed to raise a small amount of funding:
“I was introduced to Purple Shoots. They were so supportive and understood my situation and background.”
Purple Shoots’ loan meant Ada could scale up her business. Homeland Delicacy has gained rapid acclaim for its authentic West African cuisine and event catering services.
Social enterprise lending that creates thriving communities
Many social enterprises want to grow but can’t get finance on the right terms. CDFIs offer flexible finance for social enterprises, designed and delivered by social enterprises.
In 2024, CDFIs and social banks lent £96.7m to 364 social enterprises, of which:
were women-led
social enterprises
were ethnic minority-led social enterprises
were in the UK’s most disadvantaged areas
were outside London
Customer story: Magical literacy hub transformed
Rotherham’s award-winning literacy charity Grimm & Co has been changing thousands children’s lives through its inspirational story-writing workshops and fun activities.
But when it was about to fit out a magical new home the pandemic struck and it was hit by rising costs. Key Fund came to the rescue with a £150,000 loan/grant package.
“Without Key Fund’s help, we may have had to resort to crowd-funding, or appealing for donations, and this could have taken a long time and delayed the project even further.” Deborah Bullivant, founding CEO.
Grimm & Co was able to secure a contractor to create its wondrous interior, complete with secret doors, a staircase of books and a giant beanstalk slide –plus retail and cafe spaces. Now the charity, which employs 25, has expanded its popular programmes, which already engage and impact thousands of young people.
Personal lending that drives financial inclusion
Millions struggle to access fair credit when they need it most. CDFIs look beyond credit scores, so they can often say “yes” where others say “no.”
In 2024, CDFIs lent £81.8m in 134,896 personal loans, of which:
were to people in receipt of benefits
were to social housing residents
were to women
were to single parents
Customer story: Stella
Hear Lyndsey, Ada, Deborah and Stella’s stories
Policymakers, banks and stakeholders: scale up the CDFI sector’s impact by advocating, promoting and investing in CDFIs
Policymakers, banks, stakeholders: scale up the CDFI sector’s impact by advocating, promoting and investing in CDFIs:
- Build stronger partnerships between banks and CDFIs
- Make the Growth Guarantee Scheme permanent
- Let Dormant Assets funds flow into communities
- Improve bank referrals to CDFIs to increase small business access to finance
Responsible Finance is the trading name of the Community Development Finance Association (CDFA). The Community Development Finance Association (CDFA) is authorised and regulated by the Financial Conduct Authority with Firm Reference Number 1005502. Company number 04111603