FINANCE NEWS: Budget lets social enterprises apply for property loans

Social enterprises will be able to get loans to develop their property under new Budget measures.

Community Development Finance Institutions (CDFIs), which lend to social enterprises, will now be permitted to invest in property.

The Community Investment Tax Credit, trailed in last December's pre-Budget report, provides tax relief of 25 per cent on investments spread over five years in CDFIs. The credit is intended to encourage investment in both social enterprises and for-profit businesses in deprived areas.

Chancellor Gordon Brown has now also allowed CDFIs that take part in the scheme to invest in property development. Restrictions mean, however, that no more than 50 per cent of the investment received through the tax credit can be in property.

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