Businesses in the UK’s West Midlands that struggle to access
finance from high street lenders are set to benefit from a £4m
funding package thanks to a unique partnership between three
socially-minded organisations.
Block Inc (NYSE: SQ), a global technology company with a focus
on financial services, is making its first social impact investment
in the UK, providing £2m capital to ART Business Loans (ART), which
is being matched by well-established ethical lender Unity Trust
Bank.
ART, a Birmingham-based Community Development Finance
Institution (CDFI), was founded in 1997 to help alleviate poverty
through enterprise by facilitating loans for local businesses. ART
lends between £10,000 and £150,000 to businesses in underserved and
disadvantaged communities which are unable to obtain their full
requirements from traditional Banks.
Dr Steve Walker, Chief Executive at ART said: “This deal is a
real game-changer for us and a great vote of confidence from such
well-established institutions as Block and Unity Trust Bank.”
“With the backing and support of these two allies, ART has never
been in a stronger position to write the next chapter of our
25-year history,” says Dr Walker.
“This £4 million agreement puts ART on a firm financial footing
at a time of considerable economic uncertainty and enables us to
continue to provide key financial support to SMEs across the West
Midlands, many of whom are currently facing considerable financial
headwinds.”
Block is made up of ecosystems, including Square, Cash App,
Spiral, TIDAL, and TBD, with a united purpose of expanding economic
access for everyone. Today’s investment comes from its $100m social
impact investment fund, which was established in 2020 to support
minority and underserved communities, allocating $10 million for
social impact investments in markets outside the U.S.
Amrita Ahuja, Chief Operating Officer and Chief Financial
Officer at Block, said: “We are thrilled to be making our first UK
social impact investment. ART’s efforts to help underserved groups
access fair and responsible finance are completely aligned with
Block’s mission of economic empowerment.
“We believe fair access to finance is what unlocks opportunities
for individuals and communities and are pleased to be able to
invest in local programs that further this mission.”
Unity Trust Bank is a thriving commercial bank that has been
using banking to improve the lives of UK communities for nearly 40
years. It is a long-standing supporter of CDFIs and has provided
ART with £20.4m funding since 2005.
Deborah Hazell, CEO at Unity Trust Bank, said: “Financial
inclusion is a key focus for us and we are committed to providing
access to fair and affordable finance through intermediaries such
as ART.
“Historically, we have supported CDFIs by match funding grant
money they have received from local authorities, central government
or the European Regional Development Fund (ERDF). This new
co-lending partnership is a significant development and we welcome
the addition of a corporate investor supporting this underserved
sector.”
About ART Business Loans
In the last 10 years, ART has lent over £24 million and the
businesses supported have created or safeguarded more than 4,000
jobs. It has a current portfolio of over £6.5 million covering 170
businesses. These include a wide variety of enterprises from
manufacturers and tech companies to service providers and
restaurateurs, including 2022 Queen’s Award for innovation winner
KPM Marine, what is now Michelin-starred Purnell's restaurant and
Chelmunds Fish and Chips, the UK’s first community-owned chip
shop.
ART has delivered many targeted loan schemes over the years and
is accredited by British Business Bank to make loans under the
latest iteration of the Recovery Loan Scheme. ART was initially
overseen by well-known industrialist Sir Adrian Cadbury.
For more see www.artbusinessloans.co.uk
About Block
Block, Inc. (NYSE: SQ) is a global technology company with a
focus on financial services. Made up of Square, Cash App, Spiral,
TIDAL, and TBD, we build tools to help more people access the
economy. Square helps sellers run and grow their businesses with
its integrated ecosystem of commerce solutions, business software,
and banking services. With Cash App, anyone can easily send, spend,
or invest their money in stocks or Bitcoin. Spiral builds and funds
free, open-source Bitcoin projects. Artists use TIDAL to help them
succeed as entrepreneurs and connect more deeply with fans. TBD is
building an open developer platform to make it easier to access
Bitcoin and other blockchain technologies without having to go
through an institution.
About Block’s Social Impact Investment Fund
In 2020, Block established a $100 million (USD) social impact
investment fund in support of minority and underserved communities,
driven by the company’s purpose of economic empowerment and its
ongoing commitment to racial equality. $10 million has been
allocated as an investment in international funds and lenders
focusing on underserved communities in Block’s markets outside the
U.S.
About Unity Trust Bank
Unity Trust Bank is an award-winning, independent, commercial
bank that uses banking to improve the lives of UK communities.
Living by its principles of banking with integrity, Unity’s
purpose is to help create a better society, not simply maximise
profits.
For more than 38 years it has supported like-minded
organisations that share its values and address social, economic
and environmental needs.
With offices in Birmingham, Manchester and London, Unity offers
a full range of banking services, including current accounts,
savings accounts and loans.
Unity is a Real Living Wage employer, a Fair Tax Mark business,
a Women In Finance Charter signatory, a member of the Banking
Standards Board and currently holds the Investors in People Gold
standard.
Visit www.unity.co.uk for more information.
You can also follow Unity Trust Bank on Twitter and Facebook, or
go to its LinkedIn page.
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