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We are the voice of the responsible finance industry
Powering people,
places and purpose
Responsible lending that drives growth and productivity while building a happier, wealthier society
to start-ups and small businesses
kickstarting 5,741 new businesses
and creating 7,399 new jobs
to individuals
helping people save up to
£52m compared to high-cost lenders*
to social enterprises and charities,
fuelling purpose and empowering communities
A vital part of the UK’s finance ecosystem
Community Development Finance Institutions support people, small businesses and social enterprises in their communities.
2025 marks the fourth year running of record lending, making a huge difference in people’s lives and to the economy.
Responsible Finance and CDFIs collaborated with banks, the government and partners to accelerate our mission to drive economic growth and tackle financial exclusion across the UK.
Scroll down for some of our data and stories, and read more in our impact report.
Finance for small businesses
Many strong and viable businesses struggle to access funding. CDFIs provide relationship-based lending and support to unlock their potential.
In 2025, CDFIs lent £181.4 million to 6,869 start-ups and small businesses, of which:
women-led
ethnic minority-led
based in UK’s most disadvantaged areas
previously declined by another lender
Customer story:
from garden shed to supermarket and ‘Series A’ success
Helena and Simon Hills launched TrueStart Coffee in 2015, “to make the world healthier and happier”. Their coffee is now stocked by retailers including Asda, Morrisons, Co-op, Costco and Ocado. A £158,000 loan from SWIG Finance in 2024 “helped us immensely,” says Simon. “When we were about to launch into Asda and Costco, we needed money to buy stock. We drew a blank with the traditional banks at the time.” TrueStart’s explosive growth from £1m to £7m turnover following SWIG’s support is “just the beginning,” says Helena – the firm, a B Corp, has recently closed a Series A investment with JamJar Investments.
Finance for microenterprises
Six specialist CDFIs offer mentoring, grants and low-interest microloans of up to £5,000 to bridge the gap between unemployment and entrepreneurship.
They specialise in lending to people other lenders cannot support and are a vital tool for social mobility and financial independence, transforming lives and local economies.
In 2025, they lent £290,059 to 113 people:
Customer story:
“I love what I do and it brings people joy”
Maysa is founder of the Shik Shak Shok School of belly dance. She is a refugee from Syria who started teaching belly-dancing in 2021. Maysa offers culturally informative and gender inclusive belly-dancing classes alongside a full-time job to support newcomers to London.
Interest-free loans from Skylight Ventures enabled Maysa to secure a venue for a year so she could develop her classes and enable access and participation.
Finance for social enterprises
CDFIs offer flexible, patient, long-term finance designed for social enterprises. In 2025, CDFIs and social banks lent £74.1m to 363 social enterprises and charities, of which:
women-led
Operate community, housing and public services
ethnic minority-led
based in UK’s most disadvantaged areas
Customer story:
social care support for 160 people every week across Northern Ireland
Kilcreggan Homes is an independent charity that provides housing, day and employment opportunities for adults with a diagnosed learning disability or autism who need support to live independently. It is expanding its accommodation and care offering with flexible loan support from Community Finance Ireland.
“Having a partner who is approachable and friendly, who listens and offers support that you know is designed to help us, creates mutual trust.” Damian Cassidy, Kilcreggan Homes.
Personal lending
Financial exclusion restricts economic productivity and participation in the workforce. CDFIs provide a fair, transparent alternative to higher-cost options and build financial resilience.
Interest saved:
£25.4m to £52.1m
between £181 and £371 for every £1,000 borrowed.
This is money that households can use or save, rather than pay to higher cost lenders.
Customer story:
Floresse swerves sharks with grant and loan
Floresse has two professional jobs and brings up her family, but no-one would give her a loan when she had an emergency expense. She considered going to a loan shark.
Luckily, she found Adage Credit, a black and minority ethnic focused loan provider which supports people experiencing exclusion from the financial system.
“It’s vital that companies like Adage exist. When you struggle and have nowhere to turn to, you know they understand.”
Finance for homeowners
Many homeowners lack the funds for urgent work to reduce energy consumption or address a deteriorating property. Lendology CIC, a leading CDFI, bridges this gap.
In 2025, they lent £5.1m to 482 homeowners.
Customer story:
Green Energy Loan is transformational for Tom’s family
Tom wanted a greener, more sustainable lifestyle for his young family in Cornwall. Living in a new-build home powered entirely by electricity, rising energy bills were becoming a real concern. Determined to make a change that would benefit both their finances and the environment, Tom explored solar energy—but needed a way to fund the upfront costs. That’s when he discovered the Cornwall Green Energy Efficient Loan, delivered by Lendology in partnership with Cornwall Council.
“The interactions with Lendology from the start were really, really responsive to our needs,” he says. Tom and his family installed solar panels and a battery storage system. Tom says the experience was transformational: “We’ve not looked back. It’s quite exciting.”
Policy recommendations
Partners, banks, Government: make CDFIs a larger part of the financial services sector, so more people can find the finance they need now and access mainstream finance in the future.
- Encourage bank-CDFI partnerships
- Reform the Bank Referral Scheme (BRS)
- Scale personal lending via a state-backed guarantee
- Extend credit broking exemptions
- Launch a dedicated microlending guarantee
- Establish consumer credit bank referral mechanisms
- Lift the Community Investment Tax Relief (CITR) cap
- Exempt CDFIs from payment of Financial Ombudsman Service (FOS) case fees
- Investigate and address high-cost small business lending
When people and businesses can access the right finance, they thrive, communities grow and the economy benefits.
Responsible Finance is the trading name of the Community Development Finance Association (CDFA). The Community Development Finance Association (CDFA) is authorised and regulated by the Financial Conduct Authority with Firm Reference Number 1005502. Company number 04111603