2016 Annual Report also points to strong growth in Microfinance and Personal Microcredit sectors
Cumulative loans of almost €70m have been issued by the Social Finance Foundation to community organisations, according to its 2016 Annual Report, issued on the10th anniversary of its establishment this week.
The Foundation was set up with €25m in equity from the Irish Banking industry to provide loan funding for community organisations that have difficulty accessing mainstream credit facilities. It has since expanded through a subsidiary, Microfinance Ireland, to provide loans for micro enterprises and through the design and delivery of Personal Microcredit facilities as an alternative to moneylending.
Its 10th Anniversary Conference is taking place in Smock Alley Theatre, Temple Bar, Dublin on morning of June 1st 2017.
Key points in the 2016 Annual Report include:
l Loan approvals of €15.6m in 2016 to community organisations for local development initiatives and cumulative loans now approaching €70m.
l €5.4m microfinance loan approvals in 2016 alone - to almost 400 microenterprises, creating 990 jobs
l Extension of the new Personal Microcredit facilities to 225 credit union offices providing an alternative to moneylending for those who cannot access mainstream loans.
l Working in partnership with relevant government departments to further support social enterprise policy
The Foundation, recorded an annual surplus of €429,000 in 2016.
According to the Foundation’s CEO, Brendan Whelan, “over 660 community organisations have been supported throughout Ireland over the past decade, from our first loan to Ballybunion Community Centre in 2007 to our latest to Equal Ireland this year. The Foundation’s core business is the provision of loan finance for community organisations’ initiatives as diverse as the development and refurbishment of community centres, sports facilities, childcare, community enterprise, social housing for elderly, special needs, heritage and tourism.
Mr Whelan said that “while these types of loans are all considered very high risk and are mostly outside the loan parameters of mainstream financial institutions, the loan loss experience of lending to communities has been excellent. Very importantly, the financial support of the Irish Banking industry has enabled the Foundation to develop a sustainable model for its business”
“The establishment in 2012 of Microfinance Ireland (MFI) with the Department of Jobs, Enterprise and Innovation (DJEI) is a great example of collaboration between the public, private, social sector and in this case the EU. MFI has lent €15m to 1,100 micro-enterprises and created or supported 2,900 jobs.
“Since Nov. 2015 Personal Microcredit services have been rolled out for individuals unable to obtain credit from mainstream institutions, as an alternative to moneylenders who often charge interest of over 180%. The Foundation is proud to have played a leading role in its inception, design and implementation.” he said
“We are currently in discussions with the Department of Arts Heritage Regional Rural and Gaeltacht Affairs on working in partnership to research the development of a policy, strategy and implementation roadmap for the development of the social enterprise sector. The sector offers significant jobs and social potential as it is underdeveloped here relative to other comparable countries.” Mr. Whelan said.
ENDS
For further information on this media release:
John Gallagher - John Gallagher Consulting - Tel. 087 9369888
