Peter Udale

CDFIs are a lifeline for small businesses that can’t access mainstream funding. The Community ENABLE Funding programme will help CDFIs meet growing demand to support even more businesses, says Theodora Hadjimichael, CEO of @resp_finance. Find out more: bit.ly/4gm44FY

4. Improving #accesstofinance with new commercial bank-backed Community Development Finance Institutions & enhancing the British Business Bank’s funding tools. This will help small businesses secure the funding they need to start up & grow. Thread 5/5

Announcing the release of our Social Impact Report 2023/24! Read or download the full report to dive deeper: first-enterprise.co.uk/about-us/impac… Our deepest gratitude to our partners, clients, and every member of our staff for helping First Enterprise create such meaningful change!

@jogideon @FishwickDavid Well said Jo! Much more can be done to support community lenders such as CDFIs. @resp_finance @kevinhollinrake @BimAfolami

📰Full Article: As one of the few Members of Parliament with a small business background, I know first-hand how important access to finance is, not only for economic growth but also the Government’s Levelling Up agenda. Lack of finance is the single largest inhibitor of business expansion and affects those from disadvantaged backgrounds and female-owned businesses disproportionately. Yet the Federation for Small Businesses research shows that high street banks aren't lending to the majority of SMEs seeking to fund business growth because this sector represents the highest risk levels. For the many small businesses which need to borrow to grow, the current options are simply not adequate. As the Member of Parliament for Stoke-on-Trent Central, I have been calling for a ‘Bank of Dave’ style community bank in Stoke, ever since I watched Dave Fishwick’s inspiring story on Netflix. Dave is a very successful businessman, but in the world of banking, his is a David versus Goliath battle. It is a story that inspires us all, because Dave is an everyman in his battle against the establishment, challenging an antiquated financial regulatory system. The rules-based system that governs our banking was set up to protect consumers and its intentions were good. However, no one can forget the banking crash of 2008 and how regulation did not stop the big players from taking enormous risks with our money. As traditional banks exit many high streets and a commitment to their local communities weakens, for individual families, the absence of a reputable borrowing facility can mean they are forced into the arms of loan sharks or payday lenders with exorbitant interest rates. Dave’s second Netflix movie is about how he took on this part of the industry. It is another reason that community-based banking is so vital in tackling the scourge of moneylenders who prey on the poor. Britain lags behind other advanced economies in developing regional and local banking. During the critical post-recession period of 2008-2013, total bank lending to non-financial businesses in the UK dropped by around 25 per cent, during the same period in Germany, lending by the thousands of regional mutual banks (Sparkassen) and co-operatives increased by around 20 per cent. At Westminster, there are sympathetic noises, but whilst Dave and I recently had meetings with both Treasury and Business ministers, joined by representatives of Credit Unions, Community Development Financial Institutions, Big Society Capital, the British Business Bank and Mutuals, progress is painfully slow. The regulator says the responsibility for changing the rules lies with Government and the Government says it is the role of the regulator. We need to enable the smaller challenger banks and CDFIs to flourish and actively support the ‘Bank of Dave’ community banking model, as well as expanding the Credit Union movement to democratise the banking and financial services sector. We must get rid of the poverty premium, where those who struggle financially are charged significantly more for borrowing. The “one size fits all” regulation that burdens smaller lenders and stifles innovation in the banking and non-banking financial sector needs reform, whilst ensuring the consumer safeguards that prevent another large-scale banking scandal are in place. Dave started this fight over twelve years ago. We should all back his campaign, because up and down the country communities are keen to help their local businesses succeed, creating new jobs and a nicer environment – regenerating high streets and supporting charities with their profits, whilst, in Dave’s words, “keeping granny’s money safe”. This philosophy has led to in excess of £30million of loans being given to local businesses and individuals in the Burnley area. The repayment level of 95 per cent is no worse than High Street Banks despite the fact that these borrowers would not have been approved for finance in those banks. Any profits benefit local charities. A simple and effective model. People want old-fashioned banking with people who are invested in making their community thrive. That’s surely not too much to ask.

📰 GB News: "‘Bank of Dave style community banking will help spread economic growth,’ writes Jo Gideon MP Jo Gideon referred to Dave’s plight as a David versus Goliath battle. Read the full article below👇 @FishwickDavid gbnews.com/opinion/bank-o…

The Small Business Finance Markets Report was recently launched by @BritishBBank. The Minister for Small Business highlighted the work of the CDFI sector and @resp_finance in his speech. british-business-bank.co.uk/research/small… #CDFIs #ResponsibleFinance #SMELending

@kevinhollinrake Great news for small businesses struggling to get the finance they need. @resp_finance

Good news on the extension and renaming of the Recovery Loan Scheme to the Growth Guarantee Scheme - vital support for lending across the UK inc for our wonderful CDFIs

We're thrilled to announce the second phase of our Community Investment Enterprise Facility (CIEF), with investment from @LBGplc, the first mainstream lender to support Community Development Finance Institutions (CDFIs) access wholesale funding at scale. Read the full release to know more about the fund and its expected impact on 800 small businesses and 10,500 jobs: bigsocietycapital.com/latest/62m-fun… #SocialImpact #SustainableFinance

Great to hear Theo Hadjimichael from @resp_finance speaking at this Treasury Select Committee Enquiry, highlighting how legislation in the US has supported CDFI growth - exactly what could be achieved in the UK with a Fair Banking Act. #FairBankingForAll parliamentlive.tv/event/index/c2…

@FBfACampaign @resp_finance @faiselr Thank you so much for your support and excellent campaign work you do on behalf of the sector. You are making a massive difference to our present and future.

"Many of the things we do, that we think are mundane, are actually extraordinary. We're doing a really good job in difficult circumstances." @faiselr celebrates the work of CDFIs at this week's @resp_finance member day. Thanks for inviting us!

@Fair4AllFinance @resp_finance We are hugely grateful for all the support you provide to Responsible Finance and more importantly, our members. Great to see you out in force!

Yesterday, Craig, Diana, Usama and Vince joined @resp_finance's Member Day in Birmingham. It was great to hear how #CDFIs are making a difference, and discussions on so many different areas, including #impactreporting and #tech solutions. Thanks for having us! #RF23

Coffee in the House of Lords this morning with Lord Kamal - discussing disadvantaged communities, funding for us and possibly playing together in a band!! Great to have his support.

@FishwickDavid @BritishBBank @jogideon @kevinhollinrake @kevinhollinrake has always been a big supporter of community lenders. @resp_finance represents 50 local not-for-profit community lenders who have lent over £1bn to underserved people and businesses across the UK during the last 5 years.

Fantastic meeting today with the British Business Bank @BritishBBank speaking all about Burnley Savings and Loans and community banking. Thank you to @jogideon for organising the meeting and we are all looking forward to speaking to the Business Minister @kevinhollinrake

@jogideon @ukonward @LocalTrust @FishwickDavid @Conservatives @CCHQPress Great to hear talk about community lenders such as Community Development Finance Institutions (CDFIs) making such a positive difference to people's lives and places. Support for a Fair Banking Act (FBA) also strong! @resp_finance #FairBankingForAll @DCMS

Delighted to be joined by Dave Fishwick (Bank of Dave) at Conservative Party Conference for a panel discussion with Onward and the Local Trust on how Government can empower neighbourhoods to regenerate.

@lucyfrazermp @griffitha An important opportunity to use financial assets to support inclusive enterprise. @resp_finance @PurpleShoots @DCMS #cdfis

Yesterday @griffitha & I met with representatives involved in the Dormant Assets Scheme. This Scheme has released almost £1 billion to support young people & charitable causes & it was brilliant to hear their views on how we build on the Scheme's huge success to date.

@pzparker @IanDunt Is it a progressive Labour policy if only very rich parents can afford private education? If they believe private education is a social bad, then surely they should abolish it altogether?

@IanDunt Many people who send their children to private schools scrape together every last penny to be able to do so, often at considerable personal sacrifice. A 20% hike will put such schools out of reach for them. That will have at least one of these effects: /1

Labour will add 20% VAT to private school fees within first year of winning power inews.co.uk/news/labour-va…

Awesome opportunity to shout from the rooftops about cdfi's AND get paid for it! Wish I was an agency! 💞 👇🏼👇🏼

@FishwickDavid @ITV @KHemingwaynews @GMB Why dont you go and see @PurpleShoots ? They do amazing work lending to small businesses. @resp_finance

I am on @ITV today speaking about the latest interest rate decision being made this morning by the Bank of England. Join myself and the wonderful @KHemingwaynews filming in Burnley and Live in the studio @GMB #BankofDave #GoodMorningBritain #GMB

We’re proud to be part of the @FBfACampaign, and looking forward to attending the Parliamentary roundtable with @APPGbanking and the APPG on Debt & Personal Finance to discuss the Fair Banking Act. #FairBankingForAll

Here is one of our investors explaining why he thinks an investment in Purple Shoots is a good thing: purpleshoots.org/support/invest…

The @NatWestGroup and @resp_finance Hardship Grants are supporting individuals affected by the cost of living crisis. Listen to Raghu Narula explaining the impact of the grants. 🔊 #CDFIs #CostOfLivingCrisis