Partnership unveils funding package for region’s firms

A trio of organisations including the Jack Dorsey-led parent company of Square, Cash App and Tidal have brought forward a £4m funding package to support the region’s firms which struggle to access finance from high street lenders.

Block Inc, a global technology company with a focus on financial services, is making its first social impact investment in the UK, providing £2m capital to ART Business Loans (ART), which is being matched by Unity Trust Bank.

ART, a Birmingham-based Community Development Finance Institution (CDFI), was founded in 1997 to help alleviate poverty through enterprise.

ART lends between £10,000 and £150,000 to businesses in underserved and disadvantaged communities which are unable to obtain their full requirements from traditional banks.

Dr Steve Walker, chief executive at ART said: “This deal is a real game-changer for us and a great vote of confidence from such well-established institutions as Block and Unity Trust Bank.

“With the backing and support of these two allies, ART has never been in a stronger position to write the next chapter of our 25-year history.

“This £4m agreement puts ART on a firm financial footing at a time of considerable economic uncertainty and enables us to continue to provide key financial support to SMEs across the West Midlands, many of whom are currently facing considerable financial headwinds.”

Amrita Ahuja, CFO at Block, said: “We are thrilled to be making our first UK social impact investment. ART’s efforts to help underserved groups access fair and responsible finance is completely aligned with Block’s mission of economic empowerment.

“We believe fair access to finance is what unlocks opportunities for individuals and communities and are pleased to be able to invest in local programs that
further this mission.”

Unity Trust Bank is headquartered in Birmingham city centre.

Deborah Hazell, CEO at Unity Trust Bank, said: “Financial inclusion is a key focus for us and we are committed to providing access to fair and affordable finance through intermediaries such as ART.

“Historically, we have supported CDFIs by match funding grant money they have received from local authorities, central government or the European Regional Development Fund (ERDF). This new co-lending partnership is a significant development and we welcome the addition of a corporate investor supporting this underserved sector.”