SME funder aims to raise £500,000 from individual investors

Dr Steve Walker, chief executive of ART Business Loans

ART Business Loans is planning to raise at least £500,000 from individual investors as it looks to access more money to be able to lend to small businesses across the West Midlands.

Last year the Birmingham-based organisation lent £2.5m, and is on track to match that amount this year, but believes it has the infrastructure to be able to lend 60% more.

“The aspiration was to lend more but you can’t lend more if you haven’t the money,” said ART chief executive Dr Steve Walker.

“We felt we have the infrastructure to lend £4m a year, but we need the money.

“The demand across the whole of the West Midlands has been high for our services.”

ART is a Community Development Finance Institution which has been providing business loans to underserved areas for two decades. It has lent more than £20m since it was founded by its first chairman Sir Adrian Cadbury in 1997.

Walker acknowledged there is “an element of deja vu” in once again going to wealthy individuals as a source of funding. He believes ART’s social mission, alongside its strong track record, adds to its appeal.

He said: “The alternative funding solutions explosion means businesses have a lot of places to go for their money.

“Some are here today, gone tomorrow, or they may not provide the same level of services as we do they are online.

“We are different. We are looking at a situation where we are lending for a purpose – that’s job creation and preservation.”

It hopes to raise £500,000 initially and will use a social investment platform, Ethex, to help it source investors.

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