Community lenders unlock 1bn to support small firms rejected by banks

This is a huge step forward," said Theodora Hadjimichael, chief executive of Responsible Finance, which represents 50 CDFIs across the UK. "We've often been constrained by limited capital, but now we've been recognised for the good that we do.

CDFIs focus on supporting viable businesses that can repay loans but struggle to secure funding elsewhere. Last year, 99% of CDFI borrowers had been rejected by other lenders, yet 89% of loans were repaid in full, demonstrating the model's effectiveness.

CDFIs' local know-how enables them to lend effectively when traditional banks cannot. Access to finance is a key barrier for small businesses, and this is a big step towards addressing that challenge.

Read at Business Matters