Leeds City Council will begin lending to businesses through peer-to-business lending platform rebuildingsociety.com.
The council will review business loan requests from companies with an LS postcode prefix and pledge funds to contribute to the loan amounts required.
The industry and location of companies will be taken into account, and the authority also plans to consider lending at discounted rates to key industries. Any interest earned will be reinvested, and the portfolio’s performance will be reviewed by council representatives on a quarterly basis.
Simon Brereton, acting head of economic policy and sector development at Leeds City Council, said: “This is the first public sector organisation to be investing through rebuildingsociety.com. We hope it will attract the interest of other public-sector lenders, as well as prospective borrowers.”