Community Development Finance Institutions
A Community Development Finance Institution ("CDFI") is a body that lends to small businesses and social enterprises that are unable to borrow easily from banks or other sources. According to a recent response by their trade association (the Community Development Finance Association ("CDFA") to the green paper on financing a private sector recovery, CDFIs have lent £190 million since 2004 creating 7,900 new businesses and 13,300 jobs and saving 6,100 businesses and 18,600 jobs. CDFIs provide starting, working capital and long term capital.
A typical CDFI is the Business Enterprise Fund of Bradford which offers businesses in North and West Yorkshire loans and equity funding as well as business support It also provides very useful templates for business plans and cash flow forecasts.