Keep support for community development finance institutions, says study

Report says they create a return and safeguard enterprise

The Government should continue to support community development finance institutions, according to an independent evaluation commissioned by the Department for Business, Innovation and Skills.

Evaluation of Community Development Finance Institutions says that CDFIs, organisations that lend money to social enterprises and businesses in deprived areas, meet several Government policy goals, including the creation of enterprise and support for under-represented groups.

The report, written by consultancy GHK, says CDFIs have created about £560m in business turnover and ensured the continuation of businesses worth another £788m.

It says that for every £1 of public money invested, CDFIs create a return for communities worth £3.57, and safeguard another £5 by protecting existing enterprise.

"This report shows the Government needs to strengthen the support it gives to the CDFI sector," said Bernie Morgan, chief executive of the Community Development Finance Association, the umbrella body for CDFIs.

Have you registered with us yet?

Register now to enjoy more articles and free email bulletins

Register
Already registered?
Sign in

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus