Action Briefing Feb 2005 - Mar 2005
	The Newsletter of Birmingham Friends of the Earth

The ART of Social Investment

Guest article: Aston Reinvestment Trust (ART), a leading Community Development Finance Institution (CDFI), has launched a campaign to raise £200,000 from individual and corporate investors interested primarily in a social rather than a financial return.

ART is a pioneer in its field, lending to enterprises in Birmingham and North Solihull which have been unable to secure the finance they need from conventional sources, but have a viable proposition and will be able to deliver social benefits as a result. 'Social benefits' include job creation and protection, or the provision of a new local service.

In the seven years since it started ART has put £3.5 million into the local economy, lending to over 200 businesses and social enterprises, enabling them to protect or create in excess of 1,200 local jobs. Borrowers, operating in a wide range of markets, have ranged from sole traders starting up to well-established organisations seeking to grow or change direction.

ART is a 'social enterprise' itself, being an independent, mutual, organisation, which reinvests the money repaid by borrowers in loans for more borrowers. All money invested is used to provide new loans.

Investments may range from £250 to £20,000 and, because ART is accredited by the DTI for Community Investment Tax Relief (CITR), investors will qualify for 5% per annum off personal or corporation tax liabilities for a maximum of five years.

Digby Jones, Director General of the CBI, is the latest personal investor in ART. He joins over 200 personal and corporate investors, which include ART’s President Sir Adrian Cadbury, former Lord Mayor Sir Richard Knowles, Barclays, Severn Trent, Jaguar and the Wesleyan Assurance Society.

"All original shareholders have seen the value of their investment in ART maintained and their funds have been used as the base to enable us to raise additional public and private sector funds from various sources" says Steve Walker, Chief Executive of ART. "Last year we lent a record £820,000 and are looking to build on that in 2004. Investors can be sure that their money is being put to practical use to make things happen which otherwise wouldn’t happen, boosting enterprise in the Birmingham area to the benefit of us all."

An investment in ART is not a 'gift'. Investments can be withdrawn at ninety days notice, although only a handful of existing investors have ever exercised this option. To obtain the full benefit of the new tax relief, the investment must be maintained for five years.

Anyone interested in investing in ART should call Steve Walker or Stuart Egginton on 0121 359 2444. A copy of ART’s Annual Report plus and an investors information document are available by logging on to www.reinvest.co.uk, emailing reinvest@gn.apc.org or calling 0121 359 2444.

Sally Edwards