A new lender is about to be started by a local Edinburgh entrepreneur in order to emulate the Bank of Dave, something that proved popular in Burnley, Lancashire, and a project that this local real estate tycoon wants to replicate in order to help small businesses raise money for projects that they are working on and in order to grow locally as they compete with large corporations around the country.
Peter Grant is at the head of the Social Bank, the name he gave to this new project with the support of many other powerful and rich organisations that will provide the funds needed to get this project off the ground. The goal of Social Bank is to help struggling businesses which may not otherwise be able to keep growing and provide the crucial local services that they currently are providing.
According to Grant, a lot of small companies are experiencing frustrations when trying to get money from the banks as those are not always interested in lending to small businesses. So he decided to do something about it, inspired by the Bank of Dave success story in India, where investor Dave Fishwick started a loans initiative that was featured on TV as a great success for local businesses.
Grant is making Social Bank into a charity and will raise some of the needed funds through gift aids. He wants this project to be all about the customers and not the overall profit of the bank, which will help startups who could not otherwise get lending done by for-profit institutions. Initially those loans will be restricted to small amounts but this level of funding will grow as donations keep coming in. His hope is to be able to help local businesses in many regions of the country and become a useful driving force in local economies.