Forest of Dean District Council to fund small business loans via FOLK2FOLK
Forest of Dean District Council has become the latest Institutional investor to sign up with FOLK2FOLK, the local lending company. By investing via FOLK2FOLK, the council will be helping to fund business loans to SMEs in the Forest of Dean.
FOLK2FOLK facilitates loans to credit-worthy businesses seeking finance to grow, develop or diversify. Loans are funded by everyday (retail) investors as well as Institutions such as Local Authorities, looking for a property-secured and inflation-beating return on their capital.
Forest of Dean District Council is the second local authority to register as an investor via FOLK2FOLK’s award-winning lending platform, with Cheltenham Borough Council already registered. Through this partnership, the council will contribute capital to fund loans for businesses in the Forest of Dean who are unable to access finance via the banks. By receiving a monthly interest rate in return, the council will also be building up its public cash reserves.
Roy Warren, FOLK2FOLK managing director, said: “Our unique local lending model means we’re the perfect investment vehicle for councils. By investing via our platform, the council will be using their cash reserves to lend to local businesses, enabling them to access the finance they might need to as they emerge from the pandemic lock down.
”In general, we’re seeing businesses seeking loans to invest in the adaptation of their business. Re-opening in a new operating environment and remaining competitive by diversifying into new products and services comes at a cost. It’s a good thing to see local authorities helping their constituents in this way, by investing their own money.
Councillor Richard Leppington, cabinet member for Finance, says: “ The economic recovery following COVID-19 requires local authorities to dig deep and support their local businesses as best they can. One of the ways we can do this is by making funding available to our local businesses over the short and medium term, and we’re excited to be working with FOLK2FOLK to deliver this.
”By becoming a FOLK2FOLK investor we can support local business growth as well as continue to help the council in its journey to become financially sustainable. We encourage any Forest based businesses that are looking for a loan of more than £50,000 to look at FOLK2FOLK’s website (www.folk2folk.com) for details.”
FOLK2FOLK has facilitated the lending of more than £360m in secured loans to hundreds of small businesses since 2013. Business loans start at £50,000, range from six months to five years, and are secured against land or property.
Contact Information
Forest of Dean Communications Team
Notes to editors
For further details, please contact:
FOLK2FOLK - Veryan Skinner, Head of Communications, [email protected] / 01566 788349
About FOLK2FOLK
Formed in 2013, FOLK2FOLK exists to help create and sustain financially and socially successful local and rural communities. It does this by matching local and rural businesses requiring debt finance with investors via its Peer-to-Peer secured lending platform. In this way, FOLK2FOLK enables its investors to help local businesses grow and thrive which may result in positive flow on benefits to the wider local community, such as job creation, contributing to the health of local economies and ultimately the wider UK economy.
FOLK2FOLK investors receive an interest rate of typically 6.5% on their loan investments and have funded in excess of £360m in loans to British businesses. Minimum borrowing amount is £50,000. Minimum investment is £20,000. All loans are secured against UK property or land.
FOLK2FOLK became authorised and regulated by the FCA in 2016. FOLK2FOLK has been approved for accreditation by the British Business Bank under the Coronavirus Business Interruption Loan Scheme (CBILS) but will initially only be open to applications from existing customers.
Peer-to-Peer lending is not a bank/deposit savings product and investors’ capital is at risk. Peer-to-Peer lending is not covered by the FSCS. www.folk2folk.com