Prosper Spring

COMMERCIAL FEATURE: ART BUSINESS LOANS
Midlands businesses to benefit from
unique social funding partnership
Businesses in the West Midlands that
struggle to access finance from high street
lenders are set to benefit from a £4m
funding package thanks to a unique
partnership between three socially-minded
organisations.
Block Inc (NYSE: SQ), 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 well-established ethical lender
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 £4 million 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.”
Block is made up of ecosystems,
including Square, Cash App, Spiral, TIDAL,
and TBD, with a united purpose of
expanding economic access for everyone.
Today’s investment comes from its $100m
social impact investment fund, which was
established in 2020 to support minority and
underserved communities, allocating $10
million for social impact investments in
markets outside the US.
Amrita Ahuja, Chief Financial Officer 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, a thriving commercial
bank that is headquartered in Birmingham
city centre, has been using banking to
improve the lives of UK communities for
nearly 40 years. It is a long-standing
supporter of CDFIs and has provided ART
with £20.4m funding since 2005.
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.”
• see www.artbusinessloans.co.uk
Pictured from left
to right are:
Deborah Hazell
CEO at Unity
Trust Bank; Dr
Steve Walker,
Chief Executive at
ART; and Helen
Prowse, Head of
International
Corporate
Communications
at Block Inc
58 PROSPER SPRING 2023