A CARDIGAN based regeneration scheme, boosted by peer to peer lending at a 4%, could soon have opportunities for new investors as the latest three year fixed bond period comes to an end.
Since 2013 the Cardigan based community benefits society 4CG has been linking local people to regeneration projects in the market town.
In 2013 the society had the opportunity of purchasing the old police station and the old courthouse in Cardigan, the community bonds initiative also known as peer to peer lending, was supported by Cooperative UK and loan note documentation approved to allow local people to have a 4% gross return per annum by lending to local regeneration initiatives.
The treasurer of 4CG - Cris Tomos explains " We had the choice of going to the high street banks to a loan and paying the interest to London based organisation or asking local people would be they be interested in the peer to peer locally based regeneration.
There is a minimum £5,000 level but it was great to see many individuals supporting and by now we have over £300,000 in the scheme paying 4% gross interest per annum.
This has also allowed us to renovate old buildings, such as the one that El Salasa has now started trading at, to help create new jobs and support local suppliers".
The scheme has allowed additional buildings to be purchased using local funds and keeping the return on investment local.
The Chair of 4CG - Jenny Linfoot added:
" Having a local means of supporting the economy of Cardigan and getting a 4% annual return is fantastic.
"4CG is all about keeping it local and giving local people a fair return. Those that have been in the scheme from 2013 have seen a 24% return on their lending over that 6-year period.
"The peer to peer scheme is a three year fixed bond and now at the end of 2019 there could be opportunities for additional individuals to join as some members may wish to redeem their bonds but in 2016 no one wished to as the rate was such a competitive one of 4% gross per annum."
If you are interested or know of someone who would wish to support this local regeneration lending scheme please ask them to contact the 4CG office on 01239 621109 or info@4cg.org.uk
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