Agenda item

Report of the Chief Funding Director

The Committee considered a report of the Chief Funding Director proposing an approach to strengthen the lending capacity of three Community Development Finance Institutions and build a more robust evidence base for future support from Government through a strategic initiative with Responsible Finance. The Chief Funding Director introduced the report and presented the proposal to the Committee.

In response to questions from Members, the Chief Funding Director advised that the majority of the funding was frontloaded to assist the receiving organisations in leveraging further funding, and that whilst the overhead costs percentage was relatively high, this reflected the specialist nature of the work and felt to be justified, also noting that engagement with HM Treasury was felt to be the biggest source of potential change.

The Chair then drew the Committee’s attention to the recommendations, which were agreed.

RESOLVED - That the Funding Committee, in discharge of functions for the City Corporation as Trustee of Bridge House Estates and solely in the charity’s best interests:

i)                Award £788,000 over two years to Responsible Finance to provide a first loss allocation to three Community Development Finance Institutions (CDFIs) to leverage additional investment to focus on lending to London residents facing financial insecurity and build the policy case for Government support to the community lending sector.