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Community Development Finance Institutions

Question for Treasury

UIN 69147, tabled on 3 November 2021

To ask the Chancellor of the Exchequer, what support his Department plans to provide to community development finance institutions across the UK.

Answered on

9 November 2021

The Treasury recognises the vital role that non-banks, including Community Development Financial institutions (CDFIs), play in the provision of credit to SMEs. It remains grateful for the way the sector has responded to the current crisis. The Government remains committed to promoting competition and widening the funding options available to UK businesses.

Our position has always been that the Government does not provide capital to financial institutions, who must source their own funding. For those lenders accredited under the government-backed Recovery Loan Scheme, it is worth noting that they can benefit from the transfer and assignment of the guarantee. The government made this allowance in response to a request from alternative lenders support their ability to access funding.

Answered by

Treasury