Ripples Of Finance, Waves Of Change
In 2023 CDFIs invested a record amount into underserved enterprises and households:
CDFIs now operate at
the scale they did in 2023
Improving access to finance remains vital.
Our goal is to continue scaling-up the CDFI sector to unlock sustainable and inclusive economic growth.
Tides of transformation
In 2023, CDFIs transformed communities by:
Driving economic growth
- 12,135 jobs created or safeguarded
- 4,138 enterprises created or safeguarded
- 353 enterprises supported to scale
- 16,195 hours of business support
Reducing hardship for households
- £29m of interest saved
- £601m of unclaimed benefits identified
- 660,127 customers signposted to further support
Enabling social impact
- 38% of social enterprise loans and 60% of small business loans were in the 35% most disadvantaged areas in the UK
- CDFIs and social banks lent £119m to 371 social enterprises
- 93% of social enterprise loans were outside London
Contributing to SDGs 1, 5, 8 & 10
Customer story: Labfacility
“FFE is a supportive lender and has been instrumental in enabling us to develop our premises, invest in equipment and increase our capacity.”
The firm is the UK’s largest manufacturer of temperature sensors for the pressure industry and has grown its workforce and customer base, backed by several waves of finance from Responsible Finance member, Finance For Enterprise. Read more here
Business lending:
Unleashing new waves of entrepreneurial potential
In 2023 CDFIs lent
to 4,546 enterprises
They created
& safeguarded 5,402 jobs
No Data Found
No Data Found
24%
of loans were to Black, Asian & Other Ethnic Minority entrepreneurs
41%
of loans were to women
99%
were declined by mainstream finance providers
74%
of SME loans were backed by government guarantees
75%
of SME loans were eligible for Community Investment Tax Relief
60%
of SME loans were in the 35% most disadvantaged areas of the UK
Customer story: Esmie Stewart
“They asked lots of questions and went through everything with us to make sure it would work and the figures made sense. It was like getting free business consultancy.” Read more here
Personal lending:
A better today and a better tomorrow for vulnerable households
In 2023 CDFIs lent
to 85,208 customers
Saving them
in interest.
They lent to:
No Data Found
67%
of loans were to women
24%
of loans were to Black, Asian & Other Ethnic Minority groups
30%
of loans were to those aged 34 or under
39%
of loans were to those living with a disability
55%
had used a high-cost lender in the last year
30%
of loans were to lone parents
Customer story: Fiona
“I’m a staff nurse in Surrey. After the pandemic I was planning my dream wedding. Although I had saved as much as I could, I needed to borrow £1,000. I applied to a bank and knew I could afford the repayments so I was shocked when they turned me down. I found Salad Money and it seemed to make sense – if they could look at my income and outgoings, they should be able to see I could afford to borrow what I needed” Read more here
Social enterprise lending:
Strengthening communities – in 2023, CDFIs and social banks lent
to 371 social enterprises
of loans were in the
most disadvantaged areas of the UK
Customer story: Rotherham Rise
“Thanks to Key Fund, we have security. We walk into our building now. We can plan long-term and that includes looking at ways in which the building can generate more income for us.”
Security, stability and a stronger future: that’s what a loan from a CDFI, Key Fund, gave a Rotherham charity which supports survivors of domestic violence. Read more here
Investing in CDFIs: catalysing growth
In 2023 CDFIs raised £183m, including:
- Block Inc. & ART Business Loans: £2m, plus match from Unity Trust Bank
- Ceniarth & Business Enterprise Fund: £1m
- Ceniarth (with part-guarantee from Fair4All Finance) & Salad Money: £1.2m
- CITR investment: over £13m raised & £26m deployed
- City Bridge Foundation: £600,000 for a first loss pilot with personal lenders
- Lloyds Bank: £42m into the £62m Community Investment Enterprise Facility Phase Two
- NatWest Group: £900,000 to support affordable credit
Community Investment Tax Relief drove a much higher level of financial involvement from us than if it had been just strictly donations,” says Tim Stumpff, an investor in CDFI, Purple Shoots.
The second phase of Community Investment Enterprise Facility is backed by £42 million from Lloyds Bank, alongside investments from Better Society Capital and the participating CDFIs
In 2023, a record number of new investors and partners supported CDFIs’ growth, including mainstream banks, family offices, trusts and foundations, technology companies and business and consumer groups.
Surging forward
How to build bigger waves of change
INVEST IN CDFIs
- Introduce a Fair Banking Act
- Launch a new British Business Bank scheme specifically for community lenders
- Expand CITR
PROMOTE AWARENESS OF CDFIs
- Improve bank referral programme
- Unlock legacy funds for CDFIs
- Expand the credit broking exemptions
IMPROVE THE SUSTAINABILITY OF CDFIs
- Make the growth guarantee scheme permanent
- Use dormant assets for CDFIs
- Create bad debt funding or guarantee for personal lenders
Why is a record year of CDFI lending important?
- Because of what the funding enables for a business, a social enterprise, an individual or family.
- The money is getting exactly where it's needed the most.
- It’s more than just the loan.
Watch the video and read the report to learn more.
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