The assets of community development finance institutions (CDFIs) could reach £1 billion in the next five years, small business minister Nigel Griffiths told the Community Investment Finance Conference in Glasgow last week.
CDFIs provide loans to social enterprises and small businesses in deprived areas and are potential sources of investment for larger charities and trusts under "programme-related investment
- the new form of investment authorised which allows charities to invest in bodies which further their aims even if they don't give the best possible level of return.
Griffiths also said that the Community Investment Tax Credit, which gives investors in CDFI tax relief of 5 per cent over five years, would become operational later this year.
Last week also saw the launch of a new CDFI - Developing Strathclyde, which will support social enterprises and business start-ups in Glasgow and Dumbartonshire.
The fund will make loans of up to £20,000 and will operate for at least five years.