[cma-l] Government Guarantee Scheme Shakeup

[CMA-L]

Social enterprises and businesses operating in disadvantaged areas
could be set for a lending lifeline.

Business Secretary Peter Mandelson has revealed that Community
Development Finance Institutions (CDFIs) will be able to access loans
worth up to £20 million through the Government’s flagship Enterprise
Finance Guarantee Scheme.

CDFIs are independent bodies that can provide alternative funding to
entrepreneurs, companies and social enterprises in deprived areas that
are unable to access commercial finance.

There are estimated to be around 80 CDFIs currently operating across the UK.

Announcing the move at a special social enterprise summit, Lord Mandelson said:

“Community Development Finance Institutions play an extremely
important role supporting small businesses and social enterprises in
disadvantaged areas.

“In the current economic climate, these institutions are an
increasingly important source of finance and investment for small
businesses and social enterprises that have been unable to access
finance from banks.”

Cabinet Office Minister Liam Byrne added that social enterprises would
have a key role in helping the country emerge stronger from the
recession.

He said:

“Already over 60,000 social enterprises with a combined turnover of
around £27 billion are finding innovative solutions to the toughest
social and environmental problems.”

Immediately after the announcement, the Unity Trust Bank revealed they
would also be making an extra £5 million available to CDFIs.

In a further boost to social enterprise, the Cabinet Office is joining
forces with the National Endowment for Science, Technology and the
Arts (NESTA) to run a one-year advisory initiative.

The Access to Investment Programme will offer organisations the
assistance and support they need to access new sources of growth
finance.

For further information about the Enterprise Finance Guarantee Scheme,
visit the Business Link website:

http://bit.ly/rmrln

Alternatively, visit the BERR website:

http://bit.ly/13c0zw

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Community Media Association
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