Last year, our Financing the Future Economy report identified persistent barriers preventing community businesses from accessing suitable finance. Community asset developers face particular challenges, often encountering high interest rates and inflexible lending terms despite demonstrating strong social impact and track records of financial viability.
To address these challenges and gaps in the funding market for community asset developers, Power to Change is launching its Community Asset Developers Finance Initiative (CADFI). Working with the Mycelial Network, we are bringing together five community asset developers to test how accessible and patient finance can create more powerful communities and better places. The community assets developers taking part: Hastings Commons, Meanwhile Space, Nudge Community Builders, Safe Regeneration, and WeCanMake.
Alongside the small number of loans, the five community asset developers will participate in ongoing activities to share learning and insights into how patient, repayable finance can unlock new opportunities for our communities. The learning programme will be codesigned among the cohort, Power to Change, and AchieveGood. This working group will also collaborate with funders and investors to understand ways to unlock more affordable, long-term investment options for community asset developers. The goal is to demonstrate the value of innovative and accessible finance options and to shape the future of finance and investment for community businesses and other community-focused organisations.
