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 funds.
Councillor Richard Leppington, cabinet member for Finance, said: “ 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 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.