Louth groups share in €110 million fund
Investment: Minister for Finance Jack Chambers told figure as he prepared his first Budget statement
Louth community groups are among those which been kept afloat by a €110 million lifeline provided to not-for-profit organisations on both sides of the border by one of Ireland’s leading social finance lenders, Minister for Finance Jack Chambers has learned.
Mr Chambers was told the figure at the European Conference of Ethical and Alternative Banks and Financiers (FEBEA) conference at Croke Park on September 27, which was co-hosted by the all-island social enterprise charity, Community Finance Ireland (CFI), a member of FEBEA since 2016.
CEO Dónal Traynor told the gathering in Croke Park that CFI has invested €110 million in community groups on both sides of the border since 2001.
Mr Traynor, who has more than two decades’ experience in the ethical finance sector, said the money has been used to help a variety of not-for-profit organisations flourish, including faith-based groups, sports clubs, digital hubs and mountain rescue teams.
“Traditional lenders find it difficult to provide holistic credit facilities to the diverse community and voluntary sector, and to focus on the benefits of investing in people and communities rather than the bottom line and profit margins,” he said.
“And most senior bankers in the traditional sector would have a few sleepless nights if, like CFI, a quarter of their loan book was unsecured.
“However, they would be extremely envious of our default rate which is just below 0.5% of all loans since we began lending in the Republic in 2008.
“This is because of the emphasis we place on trust and the strength of the relationships we build with the organisations we work with. Our support goes well beyond a figure in a chequebook.”
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CFI, he added, was committed to creating “a world-class community finance system that works tirelessly towards ensuring that positive social impact can be made possible in communities on both sides of the border”.
This is the first occasion FEBEA, established in 2001 and representing 33 ethical finance institutions from 15 European countries, has held its annual meeting in Ireland.
In his opening remarks, Minister for Finance Jack Chambers TD said he was delighted to welcome FEBEA and its members to Ireland for their annual conference.
“Ethical loans are a well-established way to provide funding to voluntary groups in Ireland. I am sure we can learn even more from our European counterparts through FEBEA,” he said. “Ethical financiers like Community Finance Ireland provide a valuable source of support for organisations seeking to make an impact in their community.”