Colleen Ebbitt from JPMorganChase and Danielle Davis from First Enterprise join us today for a fascinating chat about listening to and supporting under-served businesses so they can thrive. How?

Well, Colleen covers JPMorganChase's small business philanthropy, which supports small business owners on their journeys to growth.

A £4m initiative, supported by JPMorganChase, is strengthening community development finance institutions' operations and helping CDFIs to deploy small business loans to great businesses which can't get the finance they need elsewhere.

"The problems that we're trying to solve are complex, multifaceted. They cannot be solved by private sector alone, public sector alone, social sector alone. So the work we do should focus on solving problems and creating value," says Colleen, explaning JPMorganChase's philosophy on the value of partnerships and creating community impact. She also talks about:

• the unique value of CDFIs as experts in supporting underserved businessses and under-invested regions

• how CDFIs take a relationship-based approach: "very different than other parts of the access to finance ecosystem that have become much more automated and quite frankly can make it even more difficult or create additional barriers for accessing finance"

• complementarity with the British Business Bank's groundbreaking Community ENABLE Funding (CEF) Programme

• the mid- and long-term potential outlook and impact

• being part of a "sea-change" by wortking with Responsible Finance, the BBB and CDFIs

First Enterprise is a CDFI which has been around since 1989. Danielle Davis covers how it has always had a strong focus on supporting underserved businesses, including those led by female and ethnic minority founders.

She describes how the JPMorganChase-supported capacity-building programme is giving First Enterprise new "oomph". It's a potent combination, "capital plus capacity" – First Enterprise is an accredited lender through the BBB's CEF programme, and Danielle explains how this means First Enterprise can support many more businesses. Also in Danielle's segment:

• how First is developing while maintaining everything its customers value such as non-financial business support

• what AI can enable

• refinancing short-term high-interest debt, with examples of a business which First Enterprise were able to save more than £30,000 pounds a month by refinancing stacked deals

What next?

• More about Responsible Finance and our member CDFIs: https://responsiblefinance.org.uk

"The only gig in town came with 60% interest, because we were considered subprime lending. It meant that every payment of £15,000 included £9,000 interest." Business owner David, who subsequently saved more than £80,000 in interest a year by refinancing with a CDFI.

When it comes to high-cost credit, most of us think of personal borrowing and payday loans. But the quote above comes from a business owner. More than a decade after the Financial Conduct Authority (FCA) took over regulating consumer lending and introduced the cap on payday loans, there's a new high-cost loan story unfolding. Up to one in four loan enquiries to Community Development Finance Institutions (CDFIs) now come from small businesses seeking to escape unsustainable high-cost loans. It rarely makes headlines, but it is leaving some firms fighting to survive.

In this episode Eleanor Russell, Policy and Research Manager at Responsible Finance, describes the high-cost business loans crisis.

A community development finance institution (CDFI), SWIG Finance, was able to refinance the business owner quoted above, saving his firm £80,000 to £90,000 of interest a year.

Eleanor has more jaw-dropping statistics and describes what banks and government can do so that more businesses become aware of ethical, responsible lending options through CDFIs, earlier.

Kate Pender is CEO of Fair4All Finance, an organisation launched to improve the financial services sector so it better serves people who are underserved and excluded.

She was appointed chief executive in 2024 having worked with Fair4All since its inception in 2019: "I drank the Kool-Aid and got hooked on the work." Kate is also a member of the Government's financial inclusion committee. She describes Fair4All's evolving work and covers:

• three highlights of its research in 2024 with fascinating implications about the potential to support social purpose lenders via sustained subsidy and about testing different types of guarantee

• advocacy for community development finance institutions (CDFIs) and supporting innovation

• the No Interest Loans Scheme pilot

• using guarantees to lever additional capital

• the importance of "hearts and minds" stories to enable co-investment and partnership

• the scale of the addressable market, customer journeys and "green shoots" on referrals from the banking sector to CDFIs

• the need for regulatory clarity to catalyse concerted change across financial services

• how Fair4All balances impact and risk tolerance when investing in organisations which support underserved people

• Kate's career before Fair4All, including supporting small businesses to grow

• the challenges Fair4All has faced as a young organisation

• tips for anyone taking up a CEO role as an internal candidate

• the potential impact of a National Financial Inclusion Strategy

• how Fair4All will continue to support CDFIs and credit unions and its key priorities for 2025

We interviewed Kate in December 2024 for this podcast, published in January 2025.

What next?

• More about Fair4AllFinance: https://fair4allfinance.org.uk

• More about Responsible Finance and our member CDFIs: https://responsiblefinance.org.uk

Why did NatWest Group choose to work with community development finance institutions (CDFIs) as part of its cost-of-living support package?

What can be done to signpost CDFIs to bank customers who are financially vulnerable?

How do bank to CDFI referral processes work for businesses and social enterprises?

And why are CDFIs such a "terrific part of the overall ecosystem of financial services" whose ability is both celebrated and championed by NatWest Group?

Brian Holland heads up NatWest Group's approach to vulnerable customers and leads on consumer duty and remediation. He is joined by Stuart Foster who looks after financial institutions across NatWest, and served on the Better Society Capital board for over six years.

NatWest Group has supported and worked with Community Development Finance Institutions for over three decades; it was a founding funder and partner to Responsible Finance, formerly the Community Development Finance Association.

We learn more about the nature of this work and long-term support, and discuss the impact of the 2023 NatWest Group and Responsible Finance Hardship Grant programme.

Brian and Stuart also discuss:

• investment into the CDFI sector and conditions which could further enable this
• why a record-breaking year of CDFI lending is so significant for communities, businesses and people

This episode was recorded in May 2024, shortly before NatWest Group hosted the launch of Responsible Finance's new Impact Report at an event addressed by CDFI customers and Bim Afolami, Economic Secretary to the Treasury.

The event was attended by social investors and banks, business and social enterprise representative organisations, financial inclusion campaigners, and politicians across parties.

Read the new impact report: https://responsiblefinance.org.uk/policy-research/impactreport/

Low emissions zones became a political battleground just after recording this interview with Kate Barnard, founder and CEO of Enjoy The Air.

But what does the public think? Can we prove the impact of "hard or soft" interventions on air quality? And just how far are people prepared to go when it comes to action in response to poor air quality?

"I was astounded" says Kate as she reveals the results of research showing just how many people will – if they have the means to – vote with their feet and move out of places with poor air. Which cities are most at risk? Kate explains.

Despite a legal requirement on local authorities to document and provide evidence of their air quality it is surprising how many don't, Kate says. Though some are exemplary: she tells us which, why, and what we can learn.

Kate spent two decades in a corporate career with Rolls Royce before launching her business, an "evidence based air quality intelligence company," which is now nearly three years old.

This is a return visit to the Responsible Finance podcast for Kate and covers a huge amount of new ground. She discusses corporate and startup culture and what funders, financial backers and corporates can do better to support the UK's startup ecosystem.

Plus plenty on the staggering results of public polling about air quality and how to communicate the reasons (and the "what's in it for me?") for Low Emissions Zones (anyone involved in policy research should listen to this).

Kate also covers the development of Enjoy the Air's HALO air quality certification (funded by SWIG Finance and the British Business Bank), and how we can improve air quality for the most vulnerable.

What next?

• More about Enjoy the Air https://enjoytheair.earth/
• More about SWIG Finance https://www.swigfinance.co.uk/
• More about Responsible Finance https://responsiblefinance.org.uk/

A community banking agreement brokered by a disadvantaged community with a mainstream bank two decades ago offers valuable insights to address financial exclusion today.

Niall Alexander, a "community worker by trade" says the "groundswell" in addressing unfairness and financial exclusion is now reaching a peak. People "aren't asking for gold plated taps" – they need very small sums of money, but could turn to illegal lenders if fair and affordable credit isn't available legally.

Niall, now Markets and Consumer Insights Manager with Fair4All Finance, covers a lot of ground in this episode and doesn't mince his words.

A couple of decades ago he worked in Wester Hailes, a peripheral housing estate in Edinburgh. With some "amazing community activists" they set up a community banking agreement with the Bank of Scotland.

• What did it achieve for disadvantaged, under-served and financially-excluded people?
• How has Niall's journey from community worker to bank employee to working with community development finance institutions, then Carnegie UK informed his work with Fair4All Finance?
• What are his key priorities with Fair4All? Niall describes the recent powerful report into illegal money lending and other forthcoming research due in September 2023.
• Why is Niall a fan of good, fit-for-purpose legislation.
• What can we do to help people avoid illegal lenders and scale up affordable credit?
• How has Michael Sheen's engagement in addressing high-cost lending been helpful?
• Why should we, and how can we, quantify the value and benefit of the wraparound services that not for profit lenders offer?
• And what potential does a Community Reinvestment Act – or Fair Banking Act – offer in the UK?

Many people work really hard to run really good businesses with wafer thin margins in community finance. And there are good people in mainstream finance who want to find common ground – despite different cultures – and Niall is confident in the potential for a "slow then sudden" change.

What next?

• Visit the Fair4All Finance website for reports mentioned in this episode https://fair4allfinance.org.uk
• Read about the report from Fair4All Finance and We Fight Fraud 'As one door closes – Experiences of illegal moneylending during an emerging cost of living crisis'
• Listen to our podcast episode with Michael Sheen
• Learn more about Fair Finance, Fair for You, Moneyline, Salad Money and Responsible Finance, which represents social purpose, community lenders in the UK: https://responsiblefinance.org.uk

Caz and Darron Burness already had a thriving business – doggy day care, pet-sitting, home boarding and other services – when they spotted an opportunity to purchase a kennels premises. It was the perfect fit.

But how to finance the acquisition? A £100,000 loan from BCRS Business Loans unlocked their ambition and growth plans, safeguarded several jobs and has enabled them to create new jobs too.

Beacon Barkers is a licensed kennels with onsite groomers and shop. Caz and Darron also offer dogwalking and pet transport and have embarked on an exciting programme to develop the kennels, launch additional services, provide volunteering and training opportunities and create more jobs.

Caz spent 23 years at TK Maxx, the fashion retailer. "I had many different jobs but always had a passion to be outside." She describes how she made the leap from employee to entrepreneur, why she and Darron approached BCRS Business Loans, their exciting plans to develop and expand the business expansion and what they have learned about buying and growing a business.

"There are good finance companies and there are not so good finance companies," says Caz. "Don't think the only people who can lend you money are a bank. Please shop around." She also explains how BCRS' support beyond the money has helped Beacon Barkers to thrive.

What next?

• Visit Beacon Barkers Kennels and Pet Centre: https://beaconbarkers.co.uk/
• More about BCRS Business Loans at https://bcrs.org.uk/
• More about community development finance institutions (CDFIs) at https://responsiblefinance.org.uk