Clann Credo invests in community
Figures from the Central Bank confirmed that the fall in bank lending to business accelerated to 2.6% in the year to May.
The biggest drop was in business loans of between one and five years.
In sharp contrast, groups and communities that depend on social finance providers have experienced no shortage of credit.
LEADER groups offering grants for community enterprises have latched onto the availability of social finance loans to communities.
Many promoters have been unable to avail of LEADER funding because they couldn’t secure bridging and working capital loans from banks and credit unions.
The absence of credit for community enterprises and micro-businesses in particular has become a serious constraint on delivery of the current €425 million LEADER programme of grants for research and development, training and mentoring and capital support.
Kilkenny LEADER Partnership (KLP) has announced plans to develop close working relations with the Clann Credo social investment fund to provide backup for applicants for KLP’s €11.5m of funding available up to 2014.
Paul O’Sullivan told the 60 people in attendance: “Clann Credo approved over €10m in new lending in 2009 and the same amount again in 2010. We expect to double that to €20 million annually, within the next five years.
“Clann Credo wants to ensure that all non-profit groups with repayment capacity enjoy access to finance on good terms and that no community is deprived of jobs or services just because they cannot get credit.”
Since 1996, Clann Credo pioneered social finance in Ireland, and now claims to be the country’s best established and leading provider of social finance, having invested €26.4m in social enterprises and projects.
“Together with local development companies like LEADER partnerships, we can fill the gap left by the banking crisis and help our people re-build society from the ground up”, said Clann Credo CEO Paul O’Sullivan.
Clann Credo’s funds come from private, non-statutory sources, including more than 20 religious charities.
