The Community Development Finance Association has appointed Jonathan Diggines, chief executive of SME venture capitalists EV Group, as its chair.

Diggines, who succeeds Roger Ong, said: “I am pleased to be joining Community Development Finance Association (cdfa) at such an important point in the organisation’s development. Having spent the majority of my career backing SMEs and working with them, I am only too aware that, for many growing companies, individuals in business and social enterprises, the biggest problem they face is to raise the capital they need - especially those working in deprived communities.

“I believe that the cdfa and its CDFI members are in a unique position to help address Britain’s growing capital shortfall by providing loans to businesses, individuals and to social enterprises, which the mainstream financial sector is not structured to cater for. I look forward to working with the cdfa’s strong team and our CDFI members to grow the funds we have available and to increase the impact of our activities in local communities.”

cdfa recently secured a £60m financing package for community development finance institutions (CDFIs) through the Regional Growth Fund. The coalition government also recently extended Community Interest Tax Relief (CITR) during the 2011 Budget, thereby encouraging private individuals and larger corporations to invest in CDFIs.