Community Development Finance Association (CDFA)

Coverage: Blackburn with Darwen, Blackpool, Burnley, Chorley, Fylde, Hyndburn, Lancaster, Pendle, Preston, Ribble Valley, Rossendale, South Ribble, West Lancashire, Wyre,

Finance Type: Business Expansion, New Business Start Up,

Summary

The Community Development Finance Association has been awarded £60,000,000 in funding under the Government’s Regional Growth Fund scheme, the biggest ever investment available to Community Development Finance Institutions (CDFIs).

The funding will be used to support the financing and growth of CDFIs, which provide loans to businesses, social enterprises and individuals who are unable access financing through traditional sources.

CDFIs will usually only lend to customers who have been unable to get the finance they need from a high street loan provider, such as a bank, building society or loan company (these are sometimes known as ‘mainstream lenders’). Some CDFIs require proof that the customer has been turned down by a mainstream lender. Some CDFIs will provide an extra loan if a business is waiting for finance to come through from another source, or if a bank is only willing to lend part of  the finance they need (these are sometimes known as ‘co-financing’, gap financing’ or ‘bridging loans’).

The two CDFI’s covering Lancashire are: the East Lancs Money Line (focuses on personal loans) and Lancashire Community Finance (which operates in Central, West and North Lancashire supplying small personal and business loans.

Funding:

The CDFA will receive £30,000,000 allocation from the Regional Growth Fund and £30,000,000 of bank finance over three years.

Timeframe:

The money will be passed on to 35 CDFIs, which lend to businesses in deprived communities, to use over the next three years. The amount that goes to each CDFI will depend on its previous success in developing jobs in deprived communities. There is relatively little detail about how it will work and the structure of the fund is currently under design.

Funding: To be confirmed

Type of Funding: Grant

Project Timeframe - Expiry Date: Sunday 31st March 2013

Eligibility: To be confirmed

Disclaimer: The information above was accurate at the time of publishing. This is a constantly evolving directory and we will amend the details as and when required. Regenerate Pennine Lancashire is not responsible for the accuracy of external information.

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